LUDWIGSHAFEN, Germany (Feb. 5, 2009)—BASF A.G. is assessing the future of its underperforming leather and textile chemicals business, as it reorganizes to incorporate the Ciba business that it is in the process of buying.
The company said a joint venture or sale of the leather and textile chemicals units are possibilities, following low growth in a fragmented, highly competitive market for several years. In its Performance Products segment, where most of the realignment will occur, BASF said it now aims for more focus on customer industries.
BASF expects the Ciba transaction to close over the first quarter of 2009.
BASF's Performance Products division currently consists of Acrylics & Dispersions, Care Chemicals and Performance Chemicals. As of April 1, a new Paper Chemicals division will be added, with Ciba's paper chemicals division to be added to this later.
The Acrylics & Dispersions division will be renamed Dispersions & Pigments, and will combine all BASF's raw materials for the coating and paint industry.
In the future, the Performance Chemicals business serve industries including plastics processing, automotive, refineries, oil fields and mining, as well as leather and textiles. Ciba's plastics additives business, which includes its protective additives for the polyurethane sector, will join this division.