BASF And INEOS Sign Joint Venture Contract For Styrolution
BASF and INEOS have signed a joint venture contract, regulating the formation of the company Styrolution. The establishment of the joint venture is subject to approval by the appropriate antitrust authorities.
BASF and INEOS said they plan 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 the new joint venture called Styrolution. The business with expandable polystyrene is not part of the transaction. BASF and INEOS will retain their respective businesses.
The company headquarters will be located in Frankfurt am Main, Germany. In the joint venture 50% of the shares will be owned by BASF and 50% by INEOS. BASF will receive cash consideration following the completion of the transaction.
BASF said it intends to contribute its SM, PS, ABS, SBC and styrene-based copolymers businesses in the joint venture. This includes production plants located in Germany (Ludwigshafen, Schwarzheide), Belgium (Antwerp), Korea (Ulsan), India (Dahej) and Mexico (Altamira). BASF employs approximately 1,460 people in its styrenics business and generated sales of about €3.9 billion in 2010.
INEOS said it intends to contribute ABS production plants at sites in Germany (Cologne), Spain (Tarragona), India (Vadodara) and Thailand (Map Ta Phut) to the joint venture. In addition INEOS will contribute its SM and PS businesses to the joint venture, which includes INEOS and INEOS Styrenics sites in Canada (Sarnia), the United States (Indian Orchard, Joliet, Decatur, Texas City, Bayport), Germany (Marl), France (Wingles) and Sweden (Trelleborg). INEOS employs approximately 2,200 people in its styrenics activities and generated sales of about €2.8 billion in 2010.
BASF and INEOS will continue to operate as strictly independent companies until the completion of the deal, which is anticipated in 2011, subject to the approval by the appropriate antitrust authorities.
Styrenics are mainly used for household and office products, for electrical and communication devices and for packaging. Styrene-based copolymers are thermoplastic resins on the basis of the monomers styrene and acrylonitrile. They are mainly used in the automotive and technical industries as well as for many everyday products.