BASF is taking steps to optimize its structures in order to sharpen the company’s focus on its customer industries.

LUDWIGSHAFEN, Germany – BASF is taking steps to optimize its structures in order to sharpen the company’s focus on its customer industries. At the same time, BASF is laying the foundation for the rapid and efficient integration of Ciba’s businesses. In particular, BASF’s Performance Products segment is being developed further. The initial organizational changes will be effective as of April 1, 2009.
BASF expects the approvals of the relevant antitrust authorities and the closing of the Ciba transaction toward the end of the first quarter of 2009. The “discovery phase” will begin immediately after closing. During this phase, which is expected to last about two months, joint teams consisting of BASF and Ciba employees will analyze the acquired businesses in depth. The goal of the analysis is to define a market-oriented position for the combined businesses as well as the optimal organizational structure. The actual integration process is then expected to start in the second half of 2009 on the basis of these results.
The Performance Products segment currently consists of the Acrylics & Dispersions, Care Chemicals and Performance Chemicals divisions. As of April 1, 2009, the new division, Paper Chemicals, will also form part of the segment. This division will initially consist of BASF’s paper chemicals, binders and kaolin minerals business, which is currently part of the Acrylics & Dispersions division. The head of the new division will be Ehrenfried (Fred) Baumgartner, who is currently responsible for BASF’s Inorganics division. Following the completion of the discovery phase, Ciba’s business involving products for paper manufacturing will be integrated into the new division.
The current Acrylics & Dispersions division will be renamed Dispersions & Pigments. This division will bundle BASF’s business involving raw materials for the coating and paint industry. As a result, the existing dispersions business will be complemented by the pigments and coatings resins business that is currently part of the Performance Chemicals division. The acrylics business will be reassigned to the Petrochemicals division, which will then encompass the key steps in the propylene value chain. The superabsorbents business will be assigned to the Care Chemicals division. The majority of Ciba’s coating effects business will be integrated into the Dispersions & Pigments division after the discovery phase.