BASF Completes Acquisition of Solvay Polyamide Business

BASF Polyamide Production Image

[Asia Economy Reporter Hwang Yoon-joo] Global chemical company BASF completed the acquisition of Solvay's polyamide (PA 6.6) business as of the 31st of last month. Through this merger and acquisition, BASF plans to expand its polyamide production capacity and supply innovative Technyl products. This will enable the provision of enhanced engineering plastic solutions for the autonomous driving and e-mobility industries.

The cash purchase price for Solvay's polyamide business and related assets acquired by BASF was 1.3 billion euros (approximately 1.6 trillion KRW), with sales recorded at 1 billion euros (approximately 1.2 trillion KRW) as of 2018. This business will be integrated into BASF's Monomers and Performance Materials division.

Under this agreement, BASF will acquire eight Solvay sites located in Germany, France, China, India, Korea, Brazil, and Mexico, as well as R&D and technical support centers in Asia and the Americas.

Additionally, BASF will hold a 50% stake in Butachimie, a production facility for adiponitrile and hexamethylenediamine (HMD) jointly invested by Solvay and the US textile company Invista in France, as well as a 51% stake in Alsachimie, a joint adipic acid production facility between BASF and DOMO Chemicals.

Wayne Smith, a member of the BASF Group Executive Board, stated, "With a broader portfolio, strengthened regional presence, and improved supply reliability, BASF will bring significant benefits to customers," adding, "Securing adiponitrile (ADN), a key raw material for product manufacturing, has strengthened the entire value chain of polyamide production."

In September 2017, BASF signed an acquisition agreement for Solvay's integrated polyamide business after receiving approval from antitrust authorities and has been pursuing the acquisition of the global polyamide business. Subsequently, on January 18, 2019, the European Commission approved the acquisition on the condition that some of Solvay's European production facilities and innovation capabilities in the engineering plastics sector be sold to a third party. DOMO Chemicals, located in Leuna, Germany, acquired these assets. The contract between Solvay and DOMO Chemicals was also finalized on the 31st of last month.

This content was produced with the assistance of AI translation services.