BASF AG has bolstered its nylon compounding business by purchasing the nylon business of Ticona for an undisclosed sum.
The deal includes intellectual property rights, licenses and customer lists for Ticona's nylon 6/6 products, but does not include any manufacturing sites or equipment. The business posted sales of about 45 million euros ($55 million) in 2002.
``As a world-leading supplier of nylon 6, BASF's acquisition of Ticona's nylon 6/6 business will complement and enhance the range of product solutions we can offer customers,'' said Raimar Jahn, BASF performance polymers president, in a Dec. 16 news release.
In the same release, Ticona President Lyndon Cole said his Frankfurt, Germany-based firm ``does not have the critical mass in nylon 6/6 to achieve our strategic objectives over the long term.''
Most of Ticona's nylon-related sales were into the North American automotive market, BASF spokesman David Elliott said. Fewer than 10 employees are expected to transfer from Ticona to BASF, which is based in Ludwigshafen. BASF's North American headquarters is in Mount Olive, N.J.
Ticona will continue to compound nylon 6/6 for a period of time at plants in Bishop, Texas, and Florence, Ky. That work then will be transferred to BASF sites. BASF currently performs nylon compounding in Wyandotte, Mich.; Sparta, Tenn.; and Chesterfield, Va.
BASF also added to its nylon 6 business when it acquired an engineering resins unit from Honeywell Inc. late last year. Spokesman Elliott said nylon ``definitely is a core business'' for BASF.