BASF announces full Engelhard integration
Reduction of approximately 800 positions
Following the acquisition of Engelhard Corporation on June 6, 2006, BASF announced the full integration of Engelhard into its global operations. BASF expects the integration to result in annual synergies of EUR160 million ($200 million) by 2010. Almost half of this amount shall be achieved by 2007 and more than 80 percent by 2008. Contributing to the synergies will be a broader global reach, a stronger business presence in certain regions such as North America, and further extensions into key markets.
The integration will lead to a reduction of about 800 positions, the majority of which will be in the United States. The one-time cost associated with the integration of the former Engelhard business is estimated to be approximately EUR100 million ($120 million).
The Catalysts division and major related research activities will be located in Iselin, New Jersey, while BASF's headquarters in North America will remain in Florham Park, New Jersey. Central to the integration plan is the structure of the new Catalysts division led by Wayne T. Smith, which will merge BASF's existing chemical catalysts business with those catalysts businesses recently acquired. In addition, BASF will combine the respective research activities in its global technology platform.
The Appearance & Performance Technologies (APT) and Ventures businesses will be integrated into the existing BASF operating divisions of Fine Chemicals, Functional Polymers, Performance Chemicals, Agricultural Products, BASF Future Business, and Catalysts.
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