German chemical company BASF has posted higher sales for the first half of 2006.

Second quarter sales climbed 16% to €12.3 billion and sales in the first half amounted to almost €25 billion, 20% higher than in the same period in 2005.

The company stated that, due to record costs for raw materials, price increases were implemented in many product lines and further increases will be necessary in the future.

In the Chemicals segment, BASF increased sales by 22%. This growth was primarily attributed to higher volumes, additional business from the new Catalysts division and new plants in Nanjing, China.

Sales in the Plastics segment increased 8% as a result of higher volumes, in particular for styrenics and polyurethanes.

In the Performance Products segment all divisions contributed to sales growth of 5%.

In Europe, second-quarter sales totalled €7.5 billion. This corresponds to an increase of 21% compared with the same period of 2005. Sales in North America rose by more than 5%. This sales growth was primarily attributed  to the acquisition of Engelhard Corporation and higher sales volumes in the Polyurethanes division. In the Asia Pacific region sales climbed by 18%. The company’s new Verbund site in Nanjing, China, made a significant contribution to this sales growth. In South America, Africa and the Middle East sales increased by 8%.