BASF buys Solvay’s polyamide business
Chemicals giant BASF has finalised its purchase of Solvay’s polyamide (PA 6.6) business for €1.3 billion.
The transaction enhances the company’s access to growth markets in Asia as well as in North and South America.
Through the backward integration into the key raw material adiponitrile (ADN), BASF will now be present along the supply chain for polyamide 6.6 and says this will improve its supply reliability.
The business will be integrated into the Performance Materials and Monomers divisions of BASF.
“With a broader portfolio, a stronger regional presence and improved supply reliability BASF will deliver significant benefits to our customers,” said Wayne Smith, a member of BASF’s board. “The acquisition stands for our strong commitment to the polyamide business globally.”
The transaction between Solvay and BASF includes eight production sites in Germany, France, China, India, South Korea, Brazil and Mexico as well as research and development centers and technical consultation centers in Asia, North and South America. In addition, it encompasses shares in two joint ventures in France: Solvay’s 50% share in the Butachimie JV with Invista to produce ADN and hexamethylenediamine (HMD) and a 51% share in the new Alsachimie JV between BASF and DOMO Chemicals to produce adipic acid.
Around 700 Solvay employees will join BASF. The Alsachimie JV between BASF and DOMO Chemicals in France employs approximately 650, the Butachimie JV between BASF and Invista has approximately 400 employees.
Image: Polyamide production. Credit: BASF
