BASF reveals Ciba integration plans
BASF has finalized its plans for the
integration of Ciba Holding AG, which
it acquired in April 2009. Under the
plans, former Ciba businesses are to be
integrated into the operating divisions
in BASF’s Performance Products segment where their potential can best be
realized and developed, according to
BASF.
The restructuring plans include a
reduction of approximately 3,700 positions by 2013, the majority of which
will be eliminated by the end of 2010.
BASF is reviewing strategic options
including restructuring, sale or closure
for 23 of the 55 former Ciba production
sites worldwide. Decisions will be made
about these sites by the end of the first
quarter of 2010. The remaining 32 production sites are to be optimized as
part of BASF’s global production network or restructured. By the end of
2010, BASF also aims to consolidate 36
of the former Ciba’s 70 sales and
administrative offices and research
sites with existing BASF activities. As
already announced, the company will
retain a strong presence in the Basel
PRICING CHANGES
Cook Composites and Polymers (CCP):
July 6–$0.05/lb. increase for all unsaturated
polyester and vinyl ester resins, gel and coatings and Thermaclean products.
Cytec Industries: Aug.1–$0.03-$0.07/lb.
increase for all powder coating products
including Crylcoat, Additol and Modaflow.
Dow Performance Monomers: July.
1–$0.10/lb. increase for acrylates, methacrylates and specialty monomers in North
America and Latin America; $0.03/lb.
increase for acylates, methacrylates and specialty monomers in Europe and Asia.
Huntsman: Aug. 1–$0.03/lb. increase in
North America and €75/MT in Europe for all
grades of titanium dioxide products.
region. The integration will involve
extensive restructuring measures that
BASF expects to generate synergies of
at least €400 million per year from
2012 onward. By the end of 2010, savings of approximately €300 million are
to be achieved. At the same time, the
integration process is expected to
entail cash costs totaling approximately €550 million, about 150 million
thereof in 2009.
BASF’s new Paper Chemicals division, formed in April, and the two associated business units Coatings &
Starch Europe and Wet End Chemicals
have been based in Basel since July 1,
2009. In addition, the European business unit for plastic additives and the
global units for technology management and the restructuring of the pigments business have been relocated to
the former headquarters of Ciba
Holding AG in Basel. BASF is also
establishing a new Business Center
Switzerland in Basel that will function
as a service platform for sales, finance,
human resources and other activities
in Switzerland. A BASF research cen-
Lanxess: Effective immediately–$0.07/lb.
minimum increase for its entire basic chemi-
cals product portfolio.
Ucar Emulsion Systems and Monomers:
July 1–$0.08/lb. increase for glacial acrylic
acid, ethyl acrylate and butyl acrylate.
DISTRIBUTOR APPOINTMENTS
Momentive Performance Materials has
appointed Archway Sales as an authorized
distributor of its specialty silanes portfolio
into southeastern U.S.
Reichhold Inc. has appointed TCR
Industries and PT Hutchins as authorized distributors of its coating resins in WA, OR, MT,
ID and CO.
ter will be based in Basel as well. BASF
aims to implement restructuring measures in a socially responsible manner
and has begun talks with local employee representatives.
“This is unfortunately not good news
for some of our employees,” said BASF
chairman Jurgen Hambrecht. “But the
combined businesses can be successful
in the long term only if we optimize
them and exploit the full potential for
synergies. I promise all our employees
that we will keep the period of uncertainty as short as possible and will
make decisions in a fair and transparent way.”
One of the key elements of the integration is Ciba’s coatings effects
activities will be integrated into
BASF’s Dispersions & Pigments division, which is organized in regional
business units. BASF will become the
world’s second-largest provider of raw
materials for the coatings and paints
industry.
IN BRIEF
BASF has received the Outstanding
Suppliers Award for 2008 from Guild
CPO, a global buying cooperative that
focuses on the procurement of raw
materials and services for the coatings
and other related industries...Dow
Corning has launched the Xiameter
web-enabled marketplace at
www.xiameter.com.............The U.S.
Environmental Protection Agency
(EPA) has awarded Clariant its
New Chemicals Program P2
Recognition Project Award for the
company’s Exolit OP 560, a new generation non-halogenated flame-retardant...Buckman has announced
it has a new name and a new look. The
company has dropped the word laboratories from its corporate logo and
adopted a new tagline, “Commitment
makes the best chemistry.” CW
