BASF EPS unit set for cuts and closures

Anthony Clark

Published: September 18, 2012 6:00 am ET

Related to this story

Topics Materials, Mergers & Acquisitions, Suppliers

LUDWIGSHAFEN, GERMANY (Sept. 18, 8:30 a.m. ET) — Sliding margins and overcapacity in the EPS market has forced BASF SE into realigning its Styropor business, the company has revealed. This will include the closure of its EPS plants in Pasir Gudang, Malaysia and Thane, India.

“These measures are part of BASF’s global strategy to foster value-oriented growth and will ensure that we remain competitive in markets where we add long-term value both to our customers’ businesses and to BASF,” said Wolfgang Hapke, president of BASF’s performance polymers division.

“The closure of BASF’s Styropor plants in Malaysia and India has become inevitable due to the high EPS overcapacities in Asia Pacific that have developed in recent years. These overcapacities have led to extremely low margins which make our operations in India and Malaysia uneconomic,” added Giorgio Greening, BASF’s head of its global business unit for foams.

In South America the company is looking to divest its EPS operations, Greening added.

“The carve-out of the Styropor business in Brazil and Argentina will help us to be flexible with regards to future strategic options. For the Styropor business in Chile the strategic evaluation is still underway,” he explained.


Comments

BASF EPS unit set for cuts and closures

Anthony Clark

Published: September 18, 2012 6:00 am ET

Post Your Comments


Back to story


More stories

Westlake Chemical Partners has strong stock opening

August 1, 2014 10:13 am ET

Westlake Chemical Partners LP debuted July 31 on the New York Stock Exchange at $24 per share, but jumped 28 percent by the end of the day.    More

LLDPE, PP sales grow in US, Canada

August 1, 2014 10:30 am ET

Other commodity resins lagged behind their rates from the first half of the previous year.    More

Private equity firm buys majority share of truck accessory maker

July 31, 2014 10:30 am ET

A majority share of Ann Arbor, Mich.-based truck accessory manufacturer Tectum Holdings Inc. has been acquired by Boston-based private equity firm TA ...    More

Image

Impact-resistant window maker buys competitor for $111 million

July 31, 2014 3:07 pm ET

PGT Inc. is acquiring CGI Windows & Doors Holdings Inc. for $111 million as part of a plan to grow strategically by buying businesses with...    More

Buyer plans to sell former Hoover molding, assembly plants

July 31, 2014 2:06 pm ET

A former Hoover manufacturing plant with 150 injection machines in El Paso, Texas, and a nearby maquiladora plant in Juarez, Mexico, changed owners an...    More

Market Reports

Pipe, Profile & Tubing Extrusion in North America 2014

U.S. demand for extruded plastics is expected to grow by 3 percent in 2014, with PVC remaining the largest segment.

Plastic pipe will post the strongest gains through 2018, continuing to take market share from competing materials in a range of markets.

Our latest market report provides in-depth analysis of current trends and their financial impact on the pipe, profile and tubing extrusion industry in North America.

Learn more

2014 Injection Molding Industry Report

GROWTH, OPPORTUNITY IN SIGHT FOR INJECTION MOLDERS IN 2014

In the wake of the economic turbulence earlier in this decade, molders today find themselves in much better shape. Molders are gaining a competitive advantage by investing in people, equipment and seeking inroads into new markets on a global scale.

Growth in the injection molding industry is going to be driven by low financing costs and a continued move to reshore some business.

Learn more

Shale Gas Market - Analysis of North American Region

This report highlights the impact of shale-based natural gas on the North American plastics market and features an in-depth analysis of production trends in the United States during 2013 and a forecast for 2014 and beyond.

Learn more

Upcoming Plastics News Events

September 10, 2014 - September 12, 2014Plastics Caps & Closures 2014

January 14, 2015 - January 14, 2015Plastics in Automotive

February 4, 2015 - February 6, 2015Plastics News Executive Forum 2015

More Events