In a surprise move, BASF (Ludwigshafen / Germany; www.basf.com) has announced that it is “evaluating strategic options” for “selected parts” of its styrenics activities and has received “an initial offer”. It did not disclose the size of the bid or the identity of the bidder. Negotiations will concern styrene monomer, polystyrene, styrene butadiene copolymer and ABS, with plants at Antwerp / Belgium, Altamira / Mexico, Sao José dos Campos / Brazil, Ulsan / South Korea and Dahej / India, which had 1,000 employees and annual sales of EUR 3.2 bn in 2006.

The flourishing EPS foam business and specialities for construction, automotive, packaging and sports and leisure industries are not for sale. BASF is in the process of expanding its “Neopor” EPS business to meet increased demand for insulation applications.

At the group’s press conference in advance of K 2007 – see Plasteurope.com of 10.07.2007 – managing board member John Feldmann hinted at no major changes in the portfolio prior to the show in late October. However, at the same time he said the group will focus its expansion efforts at the top end of the value-added chain, where “we with our knowledge can supply with better properties and at a better cost / performance ratio.” Here, the group does not have to “compete via price” with producers in countries that have cheap raw materials.

Although BASF’s earnings on styrenics “have improved considerably, thanks to efficiency optimisation measures and fine-tuning of business models – in this segment, the group now bills itself as a “lean, reliable, low-cost supplier” – Feldmann said “further repositioning steps are necessary to meet appropriate levels of profitability.”

Along with examining the initial offer, BASF has hinted that it might welcome bids from other companies “experienced in the global commodities sector.” Judging by the interest shown in Huntsman – see Plasteurope.com of 13.07.2007 – and GE Plastics (Plasteurope.com of 22.05.2007), securing an acceptable price is unlikely to be a problem. Investment bank Lazard has been chosen to handle a possible deal.