BASF demonstrate renewed strength in North America

BASF have announced that they achieved in North America annual fixed cost savings of $400 million ahead of their planned target of mid-2007. The savings measures are part of a two-phase restructuring program initiated in 2002 to increase profitability. BASF are pursuing a course of profitable growth in North America through investments and acquisitions and plan to spend over $500 million per year on capital expenditures in the region in 2006 and 2007. 'As a result of our ambitious restructuring program, strong organic growth and our recent acquisitions, BASF are demonstrating renewed strength in North America', said Klaus Peter Löbbe, member of the Board of Executive Directors of BASF Aktiengesellschaft responsible for North America. 'In this region, BASF are now the second largest chemical company in terms of sales and have improved their profitability over the last five years significantly. The integration of Engelhard, Degussa Construction Chemicals and Johnson Polymer is proceeding smoothly and according to schedule. Our new businesses will help us grow faster than the market, reduce our earnings cyclicality and supplement our product offerings to help our customers to be more successful. Thus, I am confident that BASF has a bright future in North America.' Löbbe further emphasised the importance of the region to BASF: 'The United States remains the world's largest single market for chemical products. As The Chemical Company, BASF want to have their fair share of it', he said.