Dec 12 2005
BASF is further expanding its successful engineering plastics activities. BASF Corporation, New Jersey, announced that it will acquire the North American business for major engineering plastics from LATI USA, Inc., the U.S. affiliate of the Italian plastics manufacturer LATI Industria Termoplastici SpA, effective December 30, 2005. Financial details were not disclosed.
The transaction involves customer lists for polyamide 6, polyamide 6,6, polybutylene terephthalate (PBT), and polyoxymethylene (POM) in North America. Annual sales volumes are in the low double-digit million dollar range.
The acquisition is not associated with the transfer of production sites or personnel. LATI and BASF will work closely to ensure the smooth supply of products and technical services for all customers.
“The global market for engineering plastics is very important for BASF. We are looking forward to supplying LATI’s former customers in North America with products of the high quality to which they are accustomed,” said Jay N. Baker, head of BASF’s Engineering Plastics business unit in North America.
This is BASF’s fourth acquisition in the field of engineering plastics in the last three years: Effective November this year, BASF acquired the German company Leuna-Miramid. In 2003, BASF acquired and successfully integrated Honeywell’s global engineering plastics business, as well as Ticona’s polyamide 6,6 business.
Parallel to the acquisitions, BASF is also investing to expand its global production structures. As announced in February 2005, a compounding plant for engineering plastics is currently being built in Shanghai, China. The expansion of an existing compounding plant in Pasir Gudang, Malaysia, was completed in mid-2005. A joint venture with Toray to produce PBT in Kuantan, Malaysia, is scheduled to start production at the beginning of 2006.
Engineering plastics are used in many applications, including automotive, electrical and electronics, as well as lawn and garden equipment. Particularly innovative applications include specific intake manifolds, oil sumps, gear control units, sensors, cylinder head covers, and highly integrated laserstructurable electronic devices. BASF markets polyamide 6 and polyamide 6,6 under the trademarks Ultramid®, Capron® and Miramid®, PBT and POM as Ultradur® and Ultraform®, respectively.
LATI Termoplastici SpA is headquartered in Vedano Olona, Italy, and is a leading independent supplier of engineering plastics. The company, which has been active in the European plastics market for 60 years, offers its customers a wide range of high-quality products. LATI’s North American activities are conducted via its subsidiary LATI USA Inc.
http://www.basf.com