BASF evaluates strategic options for selected styrenics activities
Initial offer for SM, PS, SBC and ABS activities recieved
BASF's activities under consideration include its styrene monomer (SM), polystyrene (PS), styrene butadiene copolymer (SBC) and acrylonitrile butadiene styrene (ABS) businesses with plants in Antwerp, Belgium; Altamira, Mexico; São José dos Campos, Brazil; Ulsan, South Korea; and Dahej, India. These activities posted sales of about EUR3.2 billion in 2006 and have approximately 1,000 employees.
"Earnings in our styrenics activities have improved considerably thanks to efficiency optimization measures and fine-tuning of business models. However, further repositioning steps are necessary to meet appropriate levels of profitability," said Dr. John Feldmann, Member of the Board of Executive Directors, responsible for the Plastics as well as Oil & Gas segments. "We will now begin talks to examine this initial offer as well as consider other options to see if these activities can realize additional potential in their highly competitive markets as part of the portfolio of a company experienced in the global commodities sector."
Hans W. Reiners, President of BASF's Styrenics division, said that BASF's remaining styrenics activities will in the future focus on foams and specialties for the construction, automobile, packaging, sport and leisure industries. "This ties in with the strategy of BASF's Plastics segment to supply its customers with highly innovative, tailor-made solutions."
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