As the Hoechst group (HQ: D-65926 Frankfurt) was reincarnated as a strategic management holding on 1 July without a partnership for polyethylene in sight, production activities were brought into a wholly owned separate company, Hostalen Polyethylen GmbH. It takes in all of the HDPE business consolidated by Hoechst and acts as the parent company of Spanish subsidiary, Hostalen Polietileno S.L., based at Barcelona. Managing director is Reinhard Traub, formerly director of the Hoechst division. The company has annual sales of around DEM 800m. A separate operation in South Africa, run by Hoechst South Africa SA, brings the total to DEM 1.1bn.

Production facilities at Frankfurt, Knapsack and Ingolstadt/Münchmünster in Germany, along with Tarragona in Spain, turn out 700,000 t of polymer. annually. A non-consolidated minority activity in Brazil, Ipiranga Petroqimica SA, has capacities for 350,000 t/y. Hoechst offers its slurry process technology in licence. Chairman Jürgen Dormann said recently the group it is still talking to BP Chemicals (HQ: Britannic House, 1 Finsbury Circus, GB-London EC2M 7BA) "as well as others" about a joint venture. The delay in concluding an agreement is attributed to differences over the value of the business as well as tax considerations.