Tuesday, 5 June 2012
CASE 406 - Basf
BASF SE is the largest diversified chemical company in the world and is headquartered in Ludwigshafen, Germany. BASF originally stood for Badische Anilin- und Soda-Fabrik. Today, the four letters are a registered trademark and the company is listed on the Frankfurt Stock Exchange, London Stock Exchange, and Zurich Stock Exchange. The company delisted its ADR from the New York Stock Exchange in September 2007. The BASF Group comprises subsidiaries and joint ventures in more than 80 countries and operates six integrated production sites and 390 other production sites in Europe, Asia, Australia, Americas and Africa. Its headquarters is located in Ludwigshafen am Rhein (Rhineland-Palatinate, Germany). BASF has customers in over 200 countries and supplies products to a wide variety of industries. Despite its size and global presence BASF receives little public attention as it abandoned consumer product lines in the 90s. At the end of 2010, the company employed more than 109,000 people, with over 50,800 in Germany alone. In 2010, BASF posted sales of €63.87 billion and income from operations before special items of about €8.1 billion. The company is currently expanding its international activities with a particular focus on Asia. Between 1990 and 2005, the company invested €5.6 billion in Asia, for example in sites near Nanjing and Shanghai, China and Mangalore in India.
BASF produces a wide range of chemicals, for example solvents, amines, resins, glues, electronic-grade chemicals, industrial gases, basic petrochemicals and inorganic chemicals. The most important customers for this segment are the pharmaceutical, construction, textile and automotive industries.
BASF offers a comprehensive product line and market expertise ranging from commodities to engineering and high-performance materials in thermoplastics, foams and urethanes. 1. Engineering Plastics BASF's Engineering Plastics consists of the "4 Ultras" - Ultramid polyamide (PA) nylon-based resins, Ultradur, polybutylene terephthalate (PBT), Ultraform, polyacetal (POM), and Ultrason, polysulfone (PSU) and polyethersulfone (PES). 2. Styrenics BASF Styrenics consists of the Foams and Copolymers. BASF's styrenic copolymers have applications in electronics, building and construction, and automotive components. 3. Polyurethanes BASF's Polyurethanes business consists of diverse technologies and finished products. Urethane chemicals are raw materials used in rigid and flexible foams commonly used for insulation in the construction and appliance industries, furniture, packaging and transportation. 4. Foams, Foams like Styropor are generally used as insulating materials. They are eco-efficient and offer advantages over other materials in terms of cost-effectiveness, preservation of resources and environmental protection. Investments made for insulating materials usually pay for themselves within a short time and contribute to retaining and even enhancing the value of buildings. 5. Polyamides and Intermediates BASF is a manufacturer of polyamide precursors and polyamide. BASF offer polyamide 6 and polyamide 6,6 polymers as well as precursors. 6. Biodegradable Plastics BASF was a pioneer in manufacturing and developing biodegradable plastic, namely, Ecoflex. Ecovio, consists of Ecoflex and a high content of polylactic acid.
BASF produces a range of performance chemicals, coatings and functional polymers. These include raw materials for detergents, textile and leather chemicals, pigments and raw materials for adhesives, paper chemicals. Customers are the automotive, oil, paper, packaging, textile, sanitary products, detergents, construction materials, coatings, printing and leather industries.
BASF's Functional Solutions segment consists of the Catalysts, Construction Chemicals and Coatings divisions. These divisions develop innovative, customer-specific products and system solutions, in particular for the automotive and construction industries.
BASF's pesticide division supplies agricultural products and chemicals. The company produces fungicides, herbicides and insecticides including F500 (pyraclostrobin), epoxiconazole, pendimethalin, boscalid, fipronil, seed treatment products and the Clearfield Production System. The company also researchs Nutrigenomics.
Oil and gas
BASF explores for and produces oil and gas through its subsidiary Wintershall Holding AG. In Central and Eastern Europe, Wintershall works with its Russian partner Gazprom.