Speculation about the future of the BASF subsidiaries, Resart GmbH (PO Box 3440, D-55024 Mainz) and Critesa SA (Barcelona) has been ended. At a recent press conference, Resart's Managing Director, Kurt Werner Kühn, announced that a definite restructuring plan has been worked out for the two companies, based on the recent board decision by BASF AG (D-67056 Ludwigshafen). In the first stage, which has already begun, a total of DM 20m to DM 25m will be invested in a number of projects to increase capacity, as well as improve productivity. One of the most important projects is the installation of a "state of the art" process control system for PMMA moulding materials. The quality of semi-finished products will be improved and the range of thicknesses and shapes of PMMA sheeting will be extended. In the second phase, at the end of 1995 or early 1996, all of the Resart activities will be transferred from Raunheim to Mainz, with additional factory extension costs estimated at DM 20m to DM 25m.

Against the background of ICI's failure to purchase the PMMA/acrylic glazing business last autumn, and BASF's statement confirming the continuing strategic importance of the PMMA business to the BASF group, it was high time for BASF to come clean about their intentions for the subsidiaries. Therefore Dr Jürgen Hambrecht, Manager of BASF's technical plastics area, emphasized that the sale of PMMA to ICI was never really thought to be appropriate from the "operative point of view", since "Lucryl and Resartglas were a crucial link in the whole value-added chain". In fact, BASF's primary interest at that time was to acquire ICI's polypropylene business, in comparison to which Resart's and Critesa's total annual production of 18,200 tonnes PMMA moulding materials, 10,000 tonnes PMMA sheeting and 2,000 t PC sheeting was of relatively minor importance. According to Hambrecht, the objective is now to strengthen its market position against entrenched competition using internal resources, by a combination of improved vertical integration within BASF and product range extension with novel glass-clear and PMMA transparent materials.

When questioned about last year's poor turnover and meagre order book, Resart was optimistic. Kühn explained that "the nadir has now been reached". In view of growing demand for moulding materials, there were "encouraging signs" of sustainable price increases. It is not expected that Resart will return to profitability during 1994 due to the impact of the high level of investment on the operating results.

READER SERVICE: Extensive reports from the press conference on the present situation and future development of Resart and Critesa: PIE-No. 36407 – Resart brochure: Semi-finished products programme review: PIE-No. 36408 – Acrylic glass sheet product information:PIE-No. 36409 – PC sheeting: PIE-No. 36410 – BASF brochures "Lucryl" PMMA moulding compounds: PIE-No. 36411 (all in German).