BASF demonstrates renewed strength in North America
Savings goal of $400 million achieved ahead of schedule
BASF announced that it had achieved in North America annual fixed cost savings of $400 million ahead of its planned target of mid-2007. The savings measures are part of a two-phase restructuring program initiated in 2002 to increase profitability. BASF is pursuing a course of profitable growth in North America through investments and acquisitions and plans to spend over $500 million per year on capital expenditures in the region in 2006 and 2007.
"As a result of our ambitious restructuring program, strong organic growth and our recent acquisitions, BASF is demonstrating renewed strength in North America," said Klaus Peter Löbbe, member of the Board of Executive Directors of BASF Aktiengesellschaft responsible for North America. "In this region, BASF is now the second largest chemical company in terms of sales and has improved its profitability over the last five years significantly. The integration of Engelhard, Degussa Construction Chemicals and Johnson Polymer is proceeding smoothly and according to schedule. Our new businesses will help us grow faster than the market, reduce our earnings cyclicality and supplement our product offerings to help our customers to be more successful. Thus, I am confident that BASF has a bright future in North America."
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