Displaying items by tag: BASF

BASF Venture Capital GmbH has participated with $5 million in the China Environment Fund (CEF) IV, L.P. Other investors include key development financial institutions, renowned family offices, strategic multinational corporations, and Fortune 500 companies. The China Environment Fund is a series of four funds and managed by Tsing Capital.

“China has a large number of highly innovative and sustainable technology companies of great strategic importance for BASF. Our participation in CEF IV enables us to set up joint activities with these companies in China. We also gain better access to technology areas of future potential and innovative chemical system solutions in the field of new materials,” said Johnnie Yuen, Regional Head at BASF Venture Capital in Asia Pacific. CEF has already demonstrated its performance track record in its three existing funds. “The performance to date and the outstanding fund management were further reasons for us to participate in CEF IV,” added Yuen.

Tsing Capital was established in 2001, and is the first fund manager investing in Chinese cleantech and environment related companies with an aggregate of assets under management over $600 million. China Environment Fund invests in portfolio companies across China in areas of renewable energy, energy efficiency, environ­mental protection, new materials, sustainable transportation, smart grids, sustainable agriculture and cleaner production. Further information can be found at www.tsingcapital.com.

About BASF Venture Capital
BASF Venture Capital GmbH was established in 2001 as a wholly owned subsidiary of BASF Future Business GmbH, Ludwigshafen, Germany, with the aim of exploring new growth potentials based on investment in startup companies

Around 2.730 exhibitors will be showing their latest portfolios at IFAT ENTSORGA, the world’s trade fair for water, sewage, waste and raw material management, at Munich, Germany, from 7 to 11 May 2012. As a strong partner of the water treatment industry BASF will be presenting its innovative and sustainable water treatment solutions on their booth under the theme “water loves solutions” (Booth No. 223/332 in Hall A3).

• Innovative system solutions for drinking water, waste water and process water treatment
• Focus on ultrafiltration solutions from inge GmbH
• Forum for intensive customer dialog

“Thanks to our global expertise in the field of water treatment, we offer customers local presence and a comprehensive product portfolio. We innovate to make our customers more successful – and we can demonstrate that well at the IFAT.” said Dr. Matthias Halusa, Head of BASF’s Global Business Management Water Solutions. “Europe is a very important market for us. We will use the trade fair extensively as a forum for dialog and like to invite all customers to use IFAT as an opportunity to engage in intensive discussion with our international team of experts.”

Tailored system solutions for our customers
At the BASF booth a large selection of innovative and sustainable system solutions for the wide range of uses awaits the trade visitor. BASF’s extensive range of established products, such as flocculants, coagulants, corrosion inhibitors, antiscalants, biocides, chelating agents and defoamers, provides tailor-made solutions for the treatment of waste water, drinking water and industrial water. This year’s main focus at IFAT will be ultrafiltration technology, a field of activity that BASF is strengthening since the acquisition of inge GmbH in 2011.

Focus on ultrafiltration solutions from inge GmbH
The German company inge GmbH – widely regarded as the global leader in the field of ultrafiltration technology – hundred percent owned by BASF and part of its Water Solutions business – features the highly-efficient and robust ultrafiltration membranes as well as the space-saving rack designs used to treat drinking water, process water, waste water and sea water. The extremely small-pore filters of the Multibore® membrane reliably intercept not only particles, but also microorganisms such as bacteria and viruses, thereby providing a dependable source of clean water.

BASF India Limited will invest €150 million to set up a new chemical production site at the Dahej Petroleum, Chemicals and Petrochemicals Investment Region (PCPIR), located on the west coast of India in Gujarat.

The new site will be an integrated hub for polyurethane manufacturing and will also house production facilities for care chemicals and polymer dispersions for coatings and paper. With this new production site, BASF aims to ensure local supply for growing markets and industries such as appliances, footwear, automotive, construction, adhesives, architectural coatings, paper and personal care. The start of production is planned for 2014.

“With its robust local industries, India is set to become a pillar of growth in Asia Pacific. The country’s changing demographic profile and the resulting need for improved quality of life are driving increasing market demand. With the new manufacturing facility, we will be able to serve our customers better by developing solutions that meet their individual needs as well as strengthen their competitive advantage,” said Dr. Martin Brudermueller, Vice Chairman of the Board of Directors of BASF SE, responsible for Asia Pacific.

“The Dahej site complements the existing manufacturing set-up of BASF in India and will support and contribute to the growth of the Indian chemical industry,” said Mr. Prasad Chandran, Chairman and Managing Director, BASF India Limited. “The location offers excellent investment conditions and a favorable business environment due to the proximity to raw materials as well as customers. With this new project, we expect to grow our businesses in the important northern and western regions of India”, he added.

The site will employ more than 250 people at full capacity, primarily in operations. With shared infrastructure and state-of-the-art production systems, the site will also provide resource efficient BASF technologies for the conservation of energy and water. The site’s advanced design takes advantage of the latest technologies from BASF facilities around the world and ensures safe and responsible operations.

The integrated polyurethane facility will produce Elastollan® TPU (Thermoplastic Polyurethane), Cellasto® NVH (Noise, Vibration and Harshness) parts and Polyurethane Systems, which is supported by new production facilities for important precursors, comprising Polyetherols and Polyesterols plants as well as a plant for processing crude MDI (diphenylmethane diisocyanate).

The care chemicals facility at the new Dahej site will produce surfactants largely for home and personal care. These surfactants will also add value to formulation technology applications including agrochemicals, textiles and emulsion polymerisation. With BASF’s global growth strategy for its care chemicals business, the Dahej site adds to BASF’s production footprint in one of the fastest growing emerging markets.

The polymer dispersions facility at the site will produce Acronal® and Styrofan®, key ingredients for architectural coatings, adhesives, and construction, Styronal® and Basonal® for paper coating and Basoplast® for sizing. BASF currently produces dispersions at an existing plant in Mangalore.

Catalent Pharma Solutions and BASF have entered into a broad collaboration and Open Alliance to provide solutions to overcome bioavailability challenges of new molecular entities with solubility or permeability challenges.

The companies aim to combine their world-leading expertise to provide pharmaceutical customers with a unique range of seamless solutions to address pipeline challenges with a large majority of BCS Class II and IV poorly bioavailable compounds. From feasibility studies across multiple technologies, solid state chemistry, consulting and training, expert formulation services, excipients and optimal dose form development, to scale-up and supply, BASF and Catalent provide a full solution to one of the most important pipeline challenges in the industry – getting better treatments to market faster.

BASF has extensive ingredient formulation and material science expertise, as well as world-class excipient products and has been a leader in developing hot melt extrusion technology solutions. Catalent is the #1 global partner in drug formulation and development as well as in finished oral dose manufacturing, with more than 75 years of experience in providing bioavailability solutions.

Ian Muir, President of Catalent’s Modified Release Technology business unit, stated, “We are very pleased to collaborate with BASF to bring this unique and impactful solution to our customers. BASF brings significant strengths and expertise that match very well with Catalent’s expertise in offering multiple solutions for poorly soluble compounds; including our Softgel platform and OptiMelt™ hot melt extrusion technologies. Our proven track record of developing, scaling up and manufacturing pharmaceutical products globally also provides for an important seamless integration from development to commercialization and ongoing supply.”

"We are glad to bring our in depth knowledge of polymeric excipients, including innovations like SOLUPLUS ® into this open alliance", says Ralf Fink, VP Global Marketing at BASF Pharma Ingredients & Services business unit. "With our broadest portfolio of solubilizers and excipients for hot-melt extrusion, coupled with Catalent’s strengths in development, formulation and manufacturing, we are in a unique position to solve the solubility challenge. With this open alliance, we help our customers in the development and commercialization of drugs with poor bioavailability."

Catalent has made significant investments in OptiMeltTM hot melt extrusion and fluid bed lab, pilot, and commercial scale equipment at its Schorndorf, Germany facility, OptiMeltTM hot melt extrusion at its Somerset, NJ facility, training and seamless method development to operationalize this open alliance. BASF is continuously investing in new excipients to provide advanced solutions for the pharmaceutical industry.

BASF will increase its capacity for cyclohexane oxidation at its Antwerp Verbund site by about 50,000 tons per year. The total investment amounts to about €10 million. Cyclohexane oxidation products are important intermediates for caprolactam and adipic acid, starting materials for polyamide 6 (PA 6) and polyamide 6.6 (PA 6.6). PA 6 and PA 6.6 are used in lightweight components for cars, flexible food packaging, fishing lines and nets through to textile fibers for outdoor sportswear and carpets.

 

“ By expanding the cyclohexane oxidation capacity, we are further increasing backward integration of the polyamide value chain at the Antwerp Verbund site. This debottlenecking project will help us to reduce our dependency on external suppliers of cyclohexane oxidation products ,” says Hermann Althoff, Head of the Polyamide and Intermediates global business unit at BASF. The expansion will be implemented as part of two long-term planned turnarounds and is intended to be completed by the end of 2014 . BASF is one of the world’s leading manufacturers of polyamide and its intermediates and operates cyclohexane oxidation units at the Verbund sites in Ludwigshafen, Antwerp and Freeport.

BASF Venture Capital GmbH has invested $13.5 million in Allylix, Inc., a U.S.-based renewable specialty chemicals company. The BASF subsidiary led a $18.2 million financing round , joined by existing investors Tate & Lyle Ventures, Avrio Ventures and Cultivian Ventures.  

 

Allylix has a proprietary technology platform to produce a wide variety of renewable specialty chemicals,such as terpenes and their derivatives, for several industries – including flavor and fragrance, food ingredients and cosmetics. The technology, based on fermentation, allows for the creation of highly pure, renewable compounds that have previously only been available from natural resources in limited quantities.

 

“Our investment in Allylix could allow us to broaden our use of renewable raw materials for sustainable chemical solutions in the future and leverage our competency in aroma chemicals, nutrition and cosmetic chemicals ,” said Dr. Daniela Proske, Principal at BASF Venture Capital America. “The company has demonstrated the ability to produce high-quality products at scalable commercial quantities and at a lower price point, which is one of several compelling reasons to invest in Allylix.”

 

Carolyn Fritz, President and Chief Executive Officer of Allylix, said: “Our biotechnological and cost-competitive manufacturing process for specialty chemicals, such as aroma chemicals, will address the consumer preference for affordable and naturally derived products . This round of funding will support the development and delivery of new compounds in Allylix’s pipeline, and will allow us to expand the market for our existing products.”

 

Terpenes and their derivatives are rarely accessible by chemical synthesis and have previously only been available from natural resources in limited amounts. Allylix’s technology platform combines biotechnology with molecular biological methods. P rotected by 57 patents, it allows the company to quickly develop and produce by fermentation high-value specialty chemicals at relatively low investment, and at a lower cost than traditional production methods.

Effective March 1, 2012, or as contracts allow, BASF will increase prices in Europe, Africa and Western Asia for polymer dispersions by 80 Euro per metric ton and redispersible powders by 140 Euro per metric ton. The price increase is necessary due to the significant rise in the cost of raw materials.

The products affected by the price increase are used as polymers for adhesives, fiberbonding , architectural coatings and construction chemicals.

About BASF

BASF is the world’s leading chemical company: The Chemical Company. Its portfolio ranges from chemicals, plastics, performance products and crop protection products to oil and gas. We combine economic success, social responsibility and environmental protection. Through science and innovation we enable our customers in almost all industries to meet the current and future needs of society. Our products and system solutions contribute to conserving resources, ensuring healthy food and nutrition and helping to improve the quality of life. We have summed up this contribution in our corporate purpose: We create chemistry for a sustainable future. BASF posted sales of about €73.5 billion in 2011 and had more than 111,000 employees as of the end of the year. BASF shares are traded on the stock exchanges in Frankfurt (BAS), London (BFA) and Zurich (AN). Further information on BASF is available on the Internet at www.basf.com . 

BASF has established new ambitious environmental, health and safety goals. The company wants to increase its energy efficiency – defined as the amount of sales products in relation to the primary energy demand – worldwide by 35 percent by 2020, compared to the previous goal of 25 percent. In addition, BASF aims to reduce greenhouse gas emissions per ton of sales product by 40 percent, originally set at 25 percent. Within the area of occupational health, BASF will measure its performance with a new, expanded indicator, the “Health Performance Index.” Safety will continue to remain the top priority for BASF.
 
“Since BASF operates in an energy-intensive industry, our success depends on securing a long-term, competitive supply of energy and raw materials. Therefore, we are constantly working on boosting our worldwide energy efficiency,” said Margret Suckale , member of the Board of Executive Directors of BASF.
In 2011, BASF increased the energy efficiency of its production processes by 26 percent, compared to 2002. The use of power plants with power-heat-technologies and other individual projects helped the company exceed its goal of improving its energy efficiency. “Our new ambitious goal is to improve the energy efficiency of our production processes by 35 percent by 2020,” explained Dr. Ulrich von Deessen, President of BASF’s Competence Center Environment, Health and Safety. For that reason, BASF will continue to optimize processes within its businesses and invest in new plants.
 
“We also aim to further reduce the greenhouse gas emissions of our production and within the whole value chain,” said von Deessen. In 2011 – as in 2010 – BASF already reached its goal of reducing the greenhouse gas emissions per metric ton of sales product by around 35 percent compared to 2002. The new goal is to lower the emissions per ton of sales product by 40 percent by 2020 compared to 2002. Overall, the company decreased its greenhouse gas emissions within the chemical business by 42 percent since 1990 due to numerous improvements in the production.
 
Emissions to air and water reduced
BASF also succeeded in further reducing emissions to air and water compared to 2002. In 2011, around 61 percent less air pollutants were emitted (excluding the oil and gas production). Emissions of organic substances to water decreased by approximately 74 percent, nitrogen by 87 percent and heavy metals by around 61 percent.
 
Within the oil and gas business, the BASF Group company Wintershall aims to discontinue the continuous flaring of associated gas within its routine operations by the end of 2012 at all of its production facilities. A new goal for Wintershall is to improve the energy efficiency of natural gas transportation: By 2020, it aims to reduce carbon emissions related to the amount and distance of transported natural gas by 10 percent compared with 2010. This will be accomplished through, for example, a more energy-efficient gas pipeline layout and the more intensive reuse of waste heat in the WINGAS Group’s transportation network.
 
Additional new environmental goals were set by BASF for the responsible use of water as a resource. By 2020, the company plans to cut in half the current amount of drinking water it uses for production compared to 2010. It also intends to establish sustainable water management systems at all production sites in areas of water stress. In the last years BASF played a decisive role in the development of the European Water Stewardship Standard, a voluntary European industry standard for the responsible use of water.
 
Focus on health and safety
Health protection will be measured by BASF worldwide with the help of a new “Health Performance Index.” The index comprises five criteria: reported cases of occupational diseases, medical emergency planning, first aid, preventive medicine and health promotion. “We never compromise on safety in daily work, plant, transportation, and product safety,” emphasized von Deessen. To improve occupational and transportation safety, the company wants to reduce the number of accidents by 2020: work-related accidents by 80 percent (base year: 2002) and transport accidents by 70 percent (base year: 2003).

BASF significantly surpassed the record levels of 2010 in sales and earnings, and thus again earned a high premium on its cost of capital in 2011. Compared with 2010, sales increased by 15% to €73.5 billion. All regions contributed to this increase. Income from operations (EBIT) before special items improved by 4% to €8.4 billion and EBIT increased almost 11% to €8.6 billion.

At the Annual Press Conference, Dr. Kurt Bock, Chairman of the Board of Executive Directors of BASF said: “2011 was another very successful year for BASF. Thus we are continuing our ambitious dividend policy and will, therefore, again propose a higher dividend of €2.50 at the Annual Meeting. This is an increase of €0.30 or 13.6% compared with the previous year.”

At around €18.1 billion, sales in the fourth quarter of 2011 were higher than in the fourth quarter of 2010, as well as in the third quarter of 2011. However, the slowing of the economy over the course of the year was reflected in the EBIT before special items, which at €1.5 billion was 14% below the fourth quarter of 2010. The trend that the company observed at the beginning of the second half of the year continued. Customers were more cautious in their ordering, reduced their inventories and put off orders in expectation that the economy would decline and prices could possibly soften.

Chief Financial Officer Dr. Hans-Ulrich Engel highlighted the strong cash flow from operating activities. “At €7.1 billion, our operating cash flow exceeded the high level of the previous year once again,” he said. Higher net income contributed significantly to this. The expansion of business and higher prices led to an increase of the funds tied up in net working capital.

Payments related to property, plant and equipment and intangible assets (capex) of €3.4 billion were €862 million above the previous year’s level. Important capital expenditures that started operations in 2011 include the expansion of the company’s site in Nanjing, China; the construction of a methylamines plant in Geismar, Louisiana; the construction of an oleum plant in Antwerp, Belgium; as well as the extension of its European natural gas pipeline system.

Outlook for the year 2012
BASF’s outlook for 2012 is based on the following economic conditions:

• Global economic growth at the previous year’s level (plus 2.7%)
• Solid growth in global chemical production, excluding pharmaceuticals (plus 4.1%)
• An average exchange rate of $1.30 per euro
• An average oil price (Brent) of $110 per barrel

Bock said: “We expect the global economy to pick up speed over the course of 2012 following a moderate start. Uncertainties due to the sovereign debt crises, in particular in Europe and the United States, will dampen growth prospects. Positive impetus for the chemical industry will again mainly come from the emerging markets.”

Excluding the effects of acquisitions and divestitures, BASF wants to increase sales volumes. The company aims to exceed the 2011 record levels in sales and EBIT before special items. Earnings will be supported by the resumption of crude oil production in Libya, as well as growing volumes in the chemicals business.

BASF plans to increase its global research and development expenditures to €1.7 billion in 2012 (2011: €1.6 billion).
“We aim to earn a high premium on our cost of capital once again in 2012. In the first half of 2012, we will likely not achieve the high levels of the first two quarters of the previous year. For the second half, we expect to surpass the levels of the same period of the previous year,” said Bock.

Sales growth in almost all segments in 4th quarter

In Chemicals, price increases in all divisions led to higher sales in the fourth quarter of 2011. In addition, the transfer of the styrenics business to the Styrolution joint venture contributed positively because ethylene sales to the joint venture have been reported as third-party sales since October 1, 2011. Due to weaker demand and ongoing high raw material prices, EBIT before special items was lower than in the fourth quarter of 2010. For the full year 2011, sales in Chemicals rose by 14% to around €13 billion and EBIT before special items grew 6% to reach a new high of €2.4 billion.

Despite lower volumes in major product lines, sales in Plastics increased in the fourth quarter of 2011 due to higher prices primarily in the Performance Polymers division. In engineering plastics, higher demand in North America, mainly from the automotive industry, compensated for lower volumes in Europe and Asia. EBIT before special items declined considerably due to lower margins as a result of weak demand and increased raw material costs, especially for TDI. For the full year 2011, sales in Plastics rose by 12% to around €11 billion while EBIT before special items of €1.2 billion was below the high level of the previous year.

The Performance Products segment posted a 19% rise in sales compared with the same quarter of the previous year. The inclusion of the Cognis businesses and price increases across all divisions contributed to this growth. Volumes declined by 6%, particularly in the Paper Chemicals and Performance Chemicals divisions. EBIT before special items declined by 25% due to expenses related to the integration of Cognis and margin pressure due to intense competition. For the full year, sales of the Performance Products segment increased by 28% to €15.7 billion. EBIT before special items reached €1.7 billion, an increase of 11%. 

Volumes in the Functional Solutions segment were up 6% driven by growing demand from the automotive industry for mobile emissions catalysts and automotive coatings. Demand from the construction industry increased slightly, primarily due to increased building activity in North America and the growing markets in Asia. Sales increased by 12% in the fourth quarter compared with the same period of the previous year. EBIT before special items more than doubled due to the strong business in Catalysts and Coatings. For the full year 2011, sales in Functional Solutions rose by 17% to €11.4 billion and EBIT before special items was up 20% to €559 million.

In Agricultural Solutions, sales declined slightly in the fourth quarter compared with the same period of the previous year. This was due to portfolio optimization measures and pre-buying by customers in the third quarter in South America. Regionally, sales in Europe were driven by positive year-end business in France. In North America, sales were up due to higher fungicide sales. EBIT before special items in the fourth quarter almost matched the prior year’s level, despite an increase in R&D spending and selling costs. For the full year 2011, sales in Agricultural Solutions rose by 3% to €4.2 billion and EBIT before special items was up 8% at €810 million.

In Oil & Gas, sales increased by 33%, driven by higher sales volumes in Natural Gas Trading and higher prices in both business sectors. In Libya, the onshore oil production restarted in mid-October with 20,000 barrels per day, and reached 60,000 barrels per day at the end of the year. EBIT before special items for the Oil & Gas segment declined by 4% in the fourth quarter of 2011 due to lower production levels in Libya compared with the previous year. The higher crude oil price partially compensated for the lower production volumes. For the full year 2011, sales in the Oil & Gas segment rose 12% to €12.1 billion. EBIT before special items decreased by 13% to €2.1 billion.

Sales in Other fell by 30%, mainly due to the transfer of the styrenics activities to the joint venture Styrolution as of October 1, 2011. BASF’s share in the joint venture is included at equity in the financial statements. Thestyrenics business, therefore, only contributed to the sales and earnings of Other for the first nine months of 2011. EBIT before special items increased in the fourth quarter by €128 million. Positive special items resulted primarily from the disposal gain of the styrenics business of €593 million. In 2011, sales in Other increased to €6.3 billion. EBIT before special items improved from minus €648 million to minus €404 million; EBIT rose from minus €707 million to €178 million due to higher positive special items.

 

BASF has announced that it will build a single-train 300,000 metric tons per year production plant for TDI (toluene diisocyanate) and expand additional plants for its precursors at its site in Ludwigshafen. These include the construction of a new hydrogen chloride recycling plant as well as the expansion of plants for nitric acid, chlorine and synthesis gas. It is also planned to expand the aromatics complex at the site for the supply of toluene. Total investment including the required infrastructure at Ludwigshafen site will be about €1 billion and create around 200 additional jobs. Production will start at the end of 2014. BASF plans to close down its 80,000 metric tons per year TDI production plant in Schwarzheide, Germany, when the new plant goes on stream. TDI is a key component mainly used for flexible polyurethane foams. “This project will position us as the low-cost TDI producer in Europe due to economies of scale and the highly efficient integration into our Verbund,” said Wayne T. Smith, President of BASF’s Polyurethanes division. “Building our new TDI plant at our largest Verbund site in Ludwigshafen gives us the advantage of the excellent production synergies, raw material integration and logistics. Together with our existing TDI sites in Asia and North America we will be able to optimally serve customers in all major markets."

“We are constantly developing the Ludwigshafen site further to remain competitive internationally. In addition to such important investments in production, this involves modernization and targeted development of the whole infrastructure,” said Dr. Bernhard Nick, Site Manager of the BASF Ludwigshafen Verbund site. “The new TDI plant and the related facilities strengthen the competitiveness of BASF’s largest Verbund site.” Associated investments in precursors and infrastructure will support additional growth in other BASF value chains.

At Schwarzheide, BASF will develop its site structures according to the future needs over the next years to focus more on specialties. With the investment BASF will have two strong sites in Europe for polyurethane basic products: Ludwigshafen for the production of TDI and Antwerp for the production of MDI (diphenylmethane diisocyanate) and propylene oxide.

TDI is a core component for polyurethanes. TDI t o a large extent is used in the automotive industry (e.g. seating cushions and interior applications) as well in the furniture segment (e.g. flexible foams for mattresses, cushions or wood coating).

BASF is a leading supplier of basic products for polyurethanes and is currently operating TDI plants in Geismar, Louisiana; Yeosu, Korea; Caojing, China and Schwarzheide, Germany.