BASF, Alpek swap business units as they change JV agreement

By Stephen Downer
Correspondent

Published: July 10, 2014 3:44 pm ET
Updated: July 10, 2014 3:54 pm ET

Image By: BASF SE Mexico's Alpek SAB de CV will buy BASF SE's EPS production facility in Guaratinguetá, Brazil, as part of the companies' new agreement.

Related to this story

Topics Materials, Mergers & Acquisitions, Materials Suppliers, Latin America
Companies & Associations BASF SE

MONTERREY, MEXICO — Alpek SAB de CV, the petrochemicals arm of Mexican conglomerate Alfa Group, has signed an agreement with German giant BASF SE that changes the complexion of their 50-50 Polioles SA de CV joint venture in Mexico.

As part of the deal, expected to be completed by early 2015, Alpek will acquire Polioles’ expandable polystyrene (EPS) business totally, including its EPS production facility in Altamira, eastern Mexico.

For its part BASF will acquire Polioles’ polyurethane (PU) business activities, including, according to a July 10 joint news release, “selected assets in its Lerma (Mexico) facility as well as all marketing and selling rights for PU systems, isocyanates and polyols.”

Alpek and BASF said Alpek will also purchase BASF’s EPS business operations in North and South America, including:

• BASF’s EPS sales and distribution channels in both regions.

• BASF’s EPS production facilities in Guaratinguetá, Brazil, and General Lagos, Argentina.

• BASF’s EPS foam parts business in Chile (Aislapol, SA).

Excluded from the transaction is BASF’s Neopor (gray EPS) business. BASF will continue to sell Neopor to its customers in the United States, Canada and South America. In Mexico, Alpek will sell Neopor for BASF, “based on a distribution agreement.”

The combined capacity of all EPS production facilities to be acquired by Alpek is about 230,000 metric tons per year, according to the news release. This figure includes Polioles’ 165,000 metric tons-per-year production plant in Altamira.

The two partners stated that about 440 employees work in the businesses affected by the agreements — 380 in the EPS unit and 60 in PU. The majority of these employees will keep their position.

Terms were not disclosed. Polioles will continue operations as an Alpek-BASF joint venture, with a product portfolio comprised of industrial and specialty chemicals.

Founded in 1965, Polioles supplies the construction, electronics, paintings, cosmetics, automotive and furniture industries. BASF acquired a 40 percent stake in it when it bought Wyandotte Chemicals Corp. in 1969.

Alfa purchased 60 percent of Polioles in 1974 and sold 10 percent of the company to BASF in 1994.

“This transaction represents an attractive opportunity for Alpek to build upon its EPS operations in Mexico, expand its EPS footprint across the Americas and consolidate its plastics & chemicals product portfolio,” said José de Jesús Valdez, Alpek’s CEO, in the news release.

“BASF will focus its EPS business on strategic markets in Europe and Asia as well as on Neopor, which is produced in Germany and Korea,” said Raimar Jahn, the president of president of BASF’s performance materials division.

Alpek is the largest petrochemical company in Mexico and the second largest in Latin America. The company operates two business segments: polyester (purified terephthalic acid, PET and polyester fibers) and plastics & chemicals (polypropylene, EPS, caprolactam, polyurethanes and other specialty and industrial chemicals).


Comments

BASF, Alpek swap business units as they change JV agreement

By Stephen Downer
Correspondent

Published: July 10, 2014 3:44 pm ET
Updated: July 10, 2014 3:54 pm ET

Post Your Comments


Back to story


More stories

Image

New Hexcel plant will supply carbon fiber for Airbus A350 XWB

September 30, 2014 2:43 pm ET

Hexcel Corp. is investing $250 million on a new carbon fiber plant in France, with part of the production going into the future Airbus SAS A350 XWB.    More

Image

LyondellBasell CEO Gallogly to retire

September 30, 2014 3:00 pm ET

James Gallogly, CEO of Houston-based polyolefins producer LyondellBasell Industries NV, on Sept. 29 announced plans to retire in 2015.    More

Image

RJG buys UK training group G&A

September 30, 2014 11:10 am ET

G&A Moulding Technology Ltd., a United Kingdom-based training and consultancy group, has been bought by RJG Inc., the U.S.-based training business.    More

Image

Asahi Kasei breaks ground on Alabama compounding plant

September 29, 2014 5:39 pm ET

Asahi Kasei Plastics North America will be able to solve two problems at once with a new compounding plant in Athens, Ala.    More

Image

DuPont shifting Teflon production in China

September 29, 2014 2:35 pm ET

DuPont Co. will spend more than $15 million to improve its fluoropolymer product offerings in China.    More

Market Reports

Plastics in Mexico - State of the Industry Report

This report analyzes the $20 million dollar plastics industry in Mexico including sales of machinery & equipment, resins and finished products.

Our industry analysis highlights macro industry trends and micro trends faced by companies that do business in Mexico. The report also provides key industry statistics and forecasts to anticipate future industry expansion.

Learn more

Plastics Caps & Closures Market Report

The annual recap of top trends and future outlook for the plastics caps & closures market features interviews with industry thought leaders and Bill Wood’s economic forecast of trends in growing end markets. You will also gain insight on trends in caps design, materials, machinery, molds & tooling and reviews of mergers & acquisitions.

Learn more

Injection Molders Market Report & Ranking 2014

This special package contains our 132-page 2014 Market Report on the Injection Molding segment and our exclusive 2014 RANKINGS database of 500+ Injection Molders for a discounted package price.

Learn more

Upcoming Plastics News Events

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

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

June 2, 2015 - June 3, 2015Plastics Financial Summit - Chicago 2015

September 16, 2015 - September 18, 2015Plastics Caps & Closures - September 2015

More Events