BASF Adds Paper Chemicals to Performance Products Segment
German chemical giant BASF has plans to streamline operations at its paper chemicals business, which will affect approximately 50 jobs across the company's worldwide operations by 2015.
The paper chemicals unit supplies a wide range of products for paper manufacturing and coating.
BASF, which generated revenues of €1.44bn in 2013, said that the paper chemicals division will be dissolved by 1 January 2015 and it will shut down the current headquarters of the unit in Basel, Switzerland by the end of this year.
As part of the restructuring, the company will integrate the wet-end chemicals and kaolin businesses into its Performance Chemicals division, and paper dispersions business and the Center for Sustainable Paper Packaging into the Dispersions & Pigments unit.
BASF said it will create a new global business unit, Paper Chemicals, within the Performance Chemicals division and is currently considering strategic options for the paper hydrous kaolin business.
BASF board of executive directors member Michael Heinz said: "Integrating the paper chemicals business along existing value chains will allow BASF to optimally steer plant capacity and leverage the advantages of the BASF Verbund.
"This will strengthen our businesses and further increase the competitiveness of our Performance Products segment."
The company said that the implementation of the new set-up will have no impact on supply security and service for customers, and it will continue to explore options to enhance competitiveness of the Performance Products segment.
The latest plans come after BASF unveiled plans to restructure its Care Chemicals division by mid-2015, as part of a rearrangement of its home care and industrial and institutional cleaning and formulation technologies businesses.