LUDIWIGSHAFEN, GERMANY (Nov. 5, 12:05 p.m. ET) — BASF SE is reducing the number of segments in its company to five from six, and the number of divisions to 14 from 15. The changes will be effective Jan. 1.
“In the new organization, the bundling of product groups with the same business model will help management to better focus on the success factors necessary to be a market leader both in meeting customer's needs and in operational excellence,” Chairman Kurt Bock said in a statement.
A new division – Performance Materials – will include plastics, currently part of Performance Polymers and Polyurethanes divisions. Products will include polyurethanes, engineering plastics and biopolymers, among others.
The Performance Materials will be part of the Functional Solutions segment.
The new organization will be reflected in first-quarter earnings published on April 26.