German chemical giant BASF SE is hoping to complete its €1.6 billion acquisition of Solvay SA's nylon business in 2018.
In its 2017 annual report published Feb. 27, the Ludwigshafen, Germany-based company said the previously announced acquisition would expand its range of engineering plastics for the transportation, construction and consumer goods industries and strengthen its access to raw materials.
Commenting on the results, BASF Chairman Kurt Bock said the company “achieved significant growth” and was able to increase profitability.
BASF reported “substantial” volume growth in all segments for the full year 2017, compared to the previous year.
Sales in the chemicals segment rose by €3.4 billion in 2017 to reach €16.3 billion.
The jump was attributed primarily to higher prices, especially in the monomers division. BASF also increased volumes in all chemicals divisions.
In the performance products segment, full year sales were up slightly at €16.2 billion, €560 million higher than the year before.
This was mainly attributable to volume growth in all divisions, with higher sales prices in the care chemicals and dispersions & pigments divisions improving the turnover.
Portfolio measures and negative currency effects in all divisions, however, reduced sales slightly.
Earnings (EBIT before special items) declined by €361 million year-on-year to €1.4 billion, largely due to lower margins which were the result of higher raw materials prices.