BASF and INEOS to Establish Global Styrenics Company
BASF SE, Ludwigshafen, Germany, and INEOS Industries Holdings Ltd., Lyndhurst, UK, have announced their intention to combine their global business activities in styrene monomers (SM), polystyrene (PS), acrylonitrile butadiene styrene (ABS), styrene-butadiene block copolymers (SBC), and other styrene-based copolymers (SAN, AMSAN, ASA, MABS), as well as copolymer blends into a new joint venture called Styrolution. A letter of intent was signed by the two companies on November 29, 2010. The establishment of the joint venture is subject to approval by the appropriate antitrust authorities.
BASF has previously announced that it will carve out its styrenics activities by the end of 2010 and transfer them into separate entities. The carve-out will continue as planned and, as of January 1, 2011, BASF’s styrenics activities will operate as a separate company with the name Styrolution. INEOS has also announced that it is to acquire the other 50% shareholding in its 50-50 styrenics joint venture, INEOS NOVA, from NOVA Chemicals. Upon completion of the proposed joint venture with BASF, INEOS will transfer these activities into the new Styrolution group.
Expandable polystyrene is not part of the transaction. BASF and INEOS will retain their expandable polystyrene businesses. The SM/PS capacities in Ludwigshafen used to produce foam will also remain with BASF, as well as the SM/PS business of BASF-YPC Co. Ltd., in Nanjing, China.
Styrolution will have a global presence and will offer benefits to its customers in the styrenics industry through enhanced efficiency, reduced costs, and excellent service.
For additional details, visit www.basf.com or www.ineos.com.