BASF SE is selling its polypropylene foam business to Knauf Industries GmbH for an undisclosed price.
The business makes PP foam under the Neopolen trade name at a site in Schwarzheide, Germany. Knauf, based in Wolfgantzen, France, specializes in molded parts made from expanded PP.
In a news release, officials with BASF in Ludwigshafen, Germany, said that the decision to sell the business "aligns with BASF's ongoing efforts to refine its business portfolio and focus on core areas of expertise." They added that the Neopolen product line "plays a pivotal role" in lightweight molded parts for the auto industry and heating and air conditioning applications.
Alongside physical infrastructure, Knauf will acquire associated products, intellectual property, customer and supplier contracts and trademark rights in the deal. The Schwarzheide site employs about 40.
Knauf officials said that the acquisition "aligns with its growth ambitions and its goal of expanding its presence and capabilities in the foam industry." The deal is expected to close in March 2024.
BASF makes a wide range of specialty plastics and chemicals. Globally, the firm employs more than 110,000 and had 2022 sales of almost $93 billion.