18 September 2012
Details
BASF
will shut down commodity EPS (Expandable Polystyrene) plants
at its site in
1. Pasir Gudand, Malaysia
2. Thanes, India
The combined annual EPS production capacity of the two plants
is more than 100,000 metric tons.
The closure of BASF's commodity EPS plants in Malaysia and India
has become inevitable due to overcapacities in Asia Pacific
developed in recent years
These overcapacities have led to extremely low margins
which make BASF's operation in India and Malaysia uneconomic.
The plan is to stop production by the end of this year.
Currently a total of 60 and 55 employees work with EPS
at both plants, respectively. BASF will work with employees effected
by the shutdowns to find the right transition plan.
www.chemwinfo.com by Khun Phichai
Use and Application of EPS
Due to its properties as packaging material and
its cost-effective insulation performance.
EPS is a product that has been widely accepted in various applications
for several decades and
still is enjoying growth rates similar to that of GDP.
www.chemwinfo.com by Khun Phichai
BASF's Global Business Strategy
To foster value-oriented growth and
will ensure that BASF remain competitive in markets
where BASF add long-term value both to customers' businesses and to itself.
In South America, BASF is preparing strategic steps.
1. BASF has started the preparation of a carve-out of commodity EPS business and
and production at its sites in Argentina and Brazil.
2. In Chile, BASF is evaluating strategic options for the EPS business and
is preparing a divestment of Aislapol, BASF's EPS foam parts producer.
Aislapol has around 175 employees.
3. BASF's commodity EPS business has around 80 employees and
an annual production capacity of 83,500 metric tons.
Focus on profitable markets and products
1. BASF will focus its global commodity EPS activities on core markets and
2. will further push the growth with the silver-gray colored EPS product
with improved insulation properties, enhanced by its graphite content.
It contributes significantly to energy efficiency in building and houses
while reducing CO2 emissions.
The silver-gray colored EPS product, which is produced at BASF sites
in South Korea and Germany, plays a key role in BASF's strategy
to focus on profitable markets and products.
www.chemwinfo.com by Khun Phichai
