Skip to main content
Sister Publication Links
  • Sustainable Plastics
  • Plastics News China
  • Rubber & Plastics News
logo-pn-color
Subscribe
  • Login
  • Register
  • Subscribe
  • News
    • Processor News
    • Suppliers
    • More News
    • End Markets
    • FYI Charts
    • LSR World
    • Multimedia
    • NPE2021
    • K Show
    • ENGEL Sponsored Content
    • Special Reports
    • Top materials of injection molders
      Recycled PET use by product category
      US PET, flexible packaging desintations
      Global fluropolymers additives market: CAGR
    • Exhibitors back NPE cancellation: ‘We couldn't take that risk'
      NPE2021 canceled as in-person event
      NPE reviews its options as pandemic prompts exhibitor to exit
      Machine builders meet pressing needs for plastic in 2020
    • Sponsored By ENGEL Machinery
      Tailored maintenance for injection molding machines and robots
      Sponsored By ENGEL Machinery
      Improve maintenance efficiency with e-connect.monitor
      Sponsored By ENGEL Machinery
      Maximum precision for lowest shot weights
      Sponsored By ENGEL Machinery
      Even more cost effectiveness for small precision parts
    • Injection Molding
    • Blow Molding
    • Film & Sheet
    • Pipe/Profile/Tubing
    • Rotomolding
    • Thermoforming
    • Recycling
    • Machinery
    • Materials
    • Molds/Tooling
    • Product news
    • Design
    • What Keeps You Up At Night
    • Mergers & Acquisitions
    • Sustainability
    • Public Policy
    • Material Insights Videos
    • Numbers that Matter
    • Polymer Points Live
    • Automotive
    • Packaging
    • Medical
    • Consumer Products
    • Construction
    • Videos
    • Galleries
    • Podcasts
    • CEO Issue
    • Best Places to Work
    • Processor of the Year
    • Rising Stars
    • Women Breaking the Mold
  • Opinion
    • The Plastics Blog
    • Kickstart
    • Heavy Metal
    • One Good Resin
    • BRICS and Plastics
    • All Things Data
    • Viewpoint
    • Perspective
    • Mailbag
    • Watching, and hoping, for progress in 2021
      COVID-19 stories dominate 2020 headlines
      Plastic Globes ask: Was there a lighter side in 2020?
      Compounders write a business survival story in 2020
    • Kickstart: Another push to reduce plastic packaging
      Kickstart: People bought a lot of refrigerators in 2020
      Kickstart: RVs gain ground as 'tailor-made' social distance vacation option
      Kickstart: Building a foam platform
    • Heavy Metal: Coronavirus edition, plus the work of working from home
      Don't put off succession planning
      What's a good gift for your cobot? Batteries?
      Here's some big ideas to mull over the holidays
    • Chase expands giving campaign in 2020
      McDivitt will showcase Ascend's COVID-19 work on CNBC's Mad Money
      Move over, Plastic Man: Here comes Plastic Woman
      Star in spotlight with West Virginia philanthropy award
    • The business case for producer responsibility
      Think divided government stalls plastics legislation? Think again
      ACC, NAM eye economic priorities in Biden presidency
      As scrap exports drop, will plastics recycling rate fall?
    • Just how big is thermoforming in North America?
      Changing names for compounders embracing corporate branding
      Diversity the key to outperforming the market
      A timeline of the industry's COVID response
    • Watching, and hoping, for progress in 2021
      The business case for producer responsibility
      Compounders write a business survival story in 2020
      Think divided government stalls plastics legislation? Think again
    • Plastics industry business owners: Listen to your future workforce
      Perspective: ‘Fake news' of a different sort?
      Perspective: Making products in the USA is good for the planet
      Perspective: Reflections on a decade of global industry collaboration on marine litter
    • Modernizing recycling infrastructure will benefit businesses as well as the environment
      Mailbag: Oil-plastics connection is overstated
      Mailbag: Plastics recycling not cost-effective
      Mailbag: Price increases hurting North American PE buyers
  • Shop Floor
    • Blending
    • Compounding
    • Drying
    • Injection Molding
    • Purging
    • Robotics
    • Size Reduction
    • Structural Foam
    • Tooling
    • Training
    • Maintenance can ensure efficient blender operation
      Dosing: Perfect for adding color
      Blending vs dosing: What you need to know
      Going low or high: Comparing volume
    • Colors and custom compounds
      In the laboratory: Compounding solutions
      Recycling content: Resins going ‘green’
      Compounding: Glass and other fillers
    • Dryer maintenance: Don’t err with air
      Dryers: Options for a shop’s process
      Dryer installation: Going central?
      Resins: Hygroscopic or non-hygroscopic
    • Electric injection molding presses: Efficiency is key
      Hydraulic injection molding machines
      Proper maintenance can prevent downtime
      Hybrid injection molding machines
    • Purging Hot runners: Open or closed methods
      Purging extrusion machinery
      Purging extrusion blow molding machines
      Purging: Chemical, abrasive and non-abrasive
    • Controls, special applications boost production, profitability
      Robot maintenance key for smooth operation
      High-speed robots: A rapid way to increase efficiency
      Robots: Every shape and size
    • Maintenance: Key for efficiency
      Shredders: Plastic in pieces
      Safety first for size reduction
      Granulators: The right fit
    • Structural foam molding: Flexibility for processors
      Video: Structural foam molding
    • Mold inventory: How many molds does a shop have?
      Molds: Innovation
      Mold changeover: Saving time and money
      How molds work
    • Labor: Apprenticeships may provide answer
      Internships: Solving the skills gap in-house
      College training, programs
      Lean Six Sigma: Transforming business operation
  • Events
    • Plastics News Events
    • Industry Events
    • Livestreams/Webinars
    • Ask the Expert
    • Polymer Points Live
    • Reifenhäuser Technologies Livestreams
    • 2020 Caps & Closures Library
    • Plastics in Healthcare Library
    • Women Breaking the Mold Networking Forum Library
    • Polymer Points Live - August 2020
      Polymer Points Live - December 2020
      Polymer Points Live - September 2020
      Polymer Points Live - January 2021
    • Plastics in Healthcare 2020
    • Plastics News Executive Forum
    • Plastics in Automotive
    • Plastics News Caps & Closures
    • Plastics in Healthcare
    • Women Breaking the Mold Networking Forum
  • Resin Prices
    • All Resins
    • Commodity TPs
    • High Temp TPs
    • ETPs
    • Thermosets
    • Recycled Plastics
    • Historic Commodity Thermoplastics
    • Historic High Temp Thermoplastics
    • Historic Engineering Thermoplastics
    • Historic Thermosets
    • Historic Recycled Plastics
  • Rankings
    • Injection Molders
    • Blow Molders
    • Film Sheet
    • Thermoformers
    • Pipe Profile Tubing
    • Rotomolders
    • Mold/Toolmakers
    • LSR Processors
    • Recyclers
    • Compounders - List
    • Association - List
    • Plastic Lumber - List
    • All
  • Data Store
  • Directory
  • More+
    • Classifieds
    • Digital Edition
    • Newsletters
    • Sponsored Content
    • Processor of the Year submissions
    • White Papers
    • Sponsored By Mitsubishi
      Innovative new technology from Mitsubishi Engineering-Plastics Corporation helps reduce emission footprints
      Canon Virginia, Inc.
      Sponsored Content By Canon Virginia, Inc.
      Canon Virginia Inc. brings collaboration to the table
      Sponsored By CDS MACHINES
      Facing medical equipment shortages during COVID-19 outbreak?
      Sponsored Content By Canon Virginia, Inc.
      Transform your molding capabilities with the Canon Shuttle Mold System
    • Sponsored By Conexiom
      Use Sales Order Automation to free up time for CSRs to focus on customers, not manual entry
    • Place an Ad
    • Sign up for Early Classified
MENU
Breadcrumb
  1. Home
  2. News
December 08, 1997 01:00 AM

BASF INVESTING $1 BILLION IN PLASTICS UNIT

Frank Esposito
  • Tweet
  • Share
  • Share
  • Email
  • More
    Print

    NEW YORK — Reinhart Katz probably won't be a big tipper by the end of the year 2000.

    By that time, BASF Corp.'s plastics division, which Katz heads as group vice president, will have spent $1 billion on expanding and growing its polymers businesses, including polystyrene and engineering plastics.

    ``We're building an aggressive position in polyurethanes, polystyrene and engineering plastics,'' Katz said Dec. 1 at BASF Corp.'s year-end media briefing in New York. ``And plastics is showing a higher growth rate than the corporation average.''

    Plastics currently ranks third in sales for Mount Olive, N.J.-based BASF Corp., which is a division of BASF AG, the global chemicals giant based in Ludwigshafen, Germany. The plastics unit rang up $1.4 billion in sales in 1996, a 21 percent share of overall sales, which trailed only consumer products and chemicals overall in the BASF mix.

    The firm's Altamira, Mexico, PS plant recently began operating, and a styrenic copolymers plant that will produce ABS, acrylic styrene acrylonitrile, and styrene acrylonitrile is being built there as well. A smaller nylon capacity expansion recently was completed in Freeport, Texas. Expansions are also in the works for acetal and nylon PBT compounds by 2000.

    These and other projects will allow BASF to build on what Katz described as ``the broadest product line in the engineering plastics industry,'' a line that offers a larger variety of products than such competitors as AlliedSignal Inc., Amoco Corp., Bayer Corp. and GE Plastics.

    The only conservative note was struck when Katz admitted that recent economic downturns in some plastics areas have caused the delay of more-extended projects, such as an additional 70 million-pound nylon expansion in Freeport.

    Katz declined to comment on rumors that BASF's 1998 growth may include the acquisition of Ticona, Hoechst Celanese Corp.'s technical polymers business. Parent company Hoechst AG has announced it is looking to sell off or enter into joint ventures in its plastics businesses, such as Ticona.

    BASF and Ticona share several product platforms, including nylon and acetal.

    ``We're always looking at potential acquisitions, but if you look back to when we started in North America in the 1980s, we've primarily built from within,'' Katz said.

    He specifically referred to BASF's 1996 decision not to buy Monsanto Co.'s ABS holdings, which eventually were acquired by Bayer.

    ``In that case, we made an evaluation of how much we would be able to pay based on expected returns, and in the end we didn't buy it,'' Katz said. ``We continued with our existing strategy and, shortly after, we decided to build our own ABS production, which would give us better economics.''

    Recent product applications — on which BASF officials focused Dec. 1 — demonstrated the versatility of the company's nylon and ASA materials.

    Nylon is continuing to grow in automotive applications such as an airbag housing used by a German automaker.

    Stateside, a Big Three automaker is to announce at January's Detroit Auto Show that it will use BASF nylon in engine covers for a variety of its vehicles.

    BASF officials declined to reveal the automaker or details of the project, but the product is a ``beauty cover'' that hides hoses and wires located under the hood, according to Ken Baraw, manager of applications development and computer analysis at BASF's applications center in Wyandotte, Mich.

    ``We're cutting across markets all over the place,'' said Baraw, who added that the ``metallic fleck'' appearance of the glass-filled nylon particularly was attractive to the automaker.

    Baraw explained that BASF has modified its approach to applications in recent years.

    ``We're not spending time on material replacement — we're looking at things like an automotive module, an entire part,'' Baraw said. ``We're looking at systems integration and a blend of our portfolio into systems.''

    Examples of this approach include merging noise-reduction equipment into air-intake manifolds and combining accelerator, brake and clutch pedals into a single unit.

    Increased noise-reduction regulations could expand plastics' automotive market, Baraw said.

    ``It won't be just a noise issue, but more of a quality-of-sound issue,'' Baraw said.

    In ASA, BASF is looking toward the spring, when a joint venture between Hunter Marine Corp. of St. Augustine, Fla., and JY Sailboats of East Lyme, Conn., will introduce a 21-foot sailboat with a hull and deck made of a thermoplastic structure that includes BASF's Luran S-brand ASA. The sailboat will be the longest built to date using ASA, eclipsing a 17-footer that recently was introduced by the joint venture.

    ASA offers excellent impact resistance even after prolonged outdoor exposure in marine applications, according to Susan Ostrowski, BASF's styrenic copolymers business team leader.

    The expanded hull and deck size now opens up about 25 percent of the sailboat market for BASF, Ostrowski said.

    ``We were limited by sheet size because of thermoforming equipment,'' Ostrowski said. ``This is a relatively small area for us, but it's significant because it shows the versatility of the product.''

    Ostrowski added that ASA eventually could make its way into thermoplastic hulls for power boats.

    Letter
    to the
    Editor

    Do you have an opinion about this story? Do you have some thoughts you'd like to share with our readers? Plastics News would love to hear from you. Email your letter to Editor at [email protected]

    Get our newsletters

    Staying current is easy with Plastics News delivered straight to your inbox, free of charge.

    Subscribe today

    Subscribe to Plastics News

    Subscribe now
    Connect with Us
    • LinkedIn
    • Facebook
    • Twitter
    • Instagram

    Plastics News covers the business of the global plastics industry. We report news, gather data and deliver timely information that provides our readers with a competitive advantage.

    logo-pn-color
    Contact Us

    1155 Gratiot Avenue
    Detroit MI 48207-2997

    Customer Service:
    877-320-1723

    Resources
    • About
    • Staff
    • Editorial Calendar
    • Media Kit
    • Data Store
    • Digital Edition
    • Custom Content
    • People
    • Contact
    • Careers
    • Sitemap
    Related Crain Publications
    • Sustainable Plastics
    • Rubber & Plastics News
    • Urethanes Technology
    • Plastics News China
    • European Rubber Journal
    • Tire Business
    Legal
    • Terms and Conditions
    • Privacy Policy
    • Privacy Request
    Copyright © 1996-2021. Crain Communications, Inc. All Rights Reserved.
    • News
      • Processor News
        • Injection Molding
        • Blow Molding
        • Film & Sheet
        • Pipe/Profile/Tubing
        • Rotomolding
        • Thermoforming
        • Recycling
      • Suppliers
        • Machinery
        • Materials
        • Molds/Tooling
        • Product news
        • Design
      • More News
        • What Keeps You Up At Night
        • Mergers & Acquisitions
        • Sustainability
        • Public Policy
        • Material Insights Videos
        • Numbers that Matter
        • Polymer Points Live
      • End Markets
        • Automotive
        • Packaging
        • Medical
        • Consumer Products
        • Construction
      • FYI Charts
        • Current FYI
      • LSR World
      • Multimedia
        • Videos
        • Galleries
        • Podcasts
      • NPE2021
      • K Show
      • ENGEL Sponsored Content
      • Special Reports
        • CEO Issue
        • Best Places to Work
        • Processor of the Year
        • Rising Stars
        • Women Breaking the Mold
    • Opinion
      • The Plastics Blog
      • Kickstart
      • Heavy Metal
      • One Good Resin
      • BRICS and Plastics
      • All Things Data
      • Viewpoint
      • Perspective
      • Mailbag
    • Shop Floor
      • Blending
      • Compounding
      • Drying
      • Injection Molding
      • Purging
      • Robotics
      • Size Reduction
      • Structural Foam
      • Tooling
      • Training
    • Events
      • Plastics News Events
        • Plastics News Executive Forum
        • Plastics in Automotive
        • Plastics News Caps & Closures
        • Plastics in Healthcare
        • Women Breaking the Mold Networking Forum
      • Industry Events
      • Livestreams/Webinars
      • Ask the Expert
      • Polymer Points Live
      • Reifenhäuser Technologies Livestreams
      • 2020 Caps & Closures Library
      • Plastics in Healthcare Library
      • Women Breaking the Mold Networking Forum Library
    • Resin Prices
      • All Resins
      • Commodity TPs
        • Historic Commodity Thermoplastics
      • High Temp TPs
        • Historic High Temp Thermoplastics
      • ETPs
        • Historic Engineering Thermoplastics
      • Thermosets
        • Historic Thermosets
      • Recycled Plastics
        • Historic Recycled Plastics
    • Rankings
      • Injection Molders
      • Blow Molders
      • Film Sheet
      • Thermoformers
      • Pipe Profile Tubing
      • Rotomolders
      • Mold/Toolmakers
      • LSR Processors
      • Recyclers
      • Compounders - List
      • Association - List
      • Plastic Lumber - List
      • All
    • Data Store
    • Directory
    • More+
      • Classifieds
        • Place an Ad
        • Sign up for Early Classified
      • Digital Edition
      • Newsletters
      • Sponsored Content
      • Processor of the Year submissions
      • White Papers