BASF expects a reduction of nearly 800 positions and a estimated cost of €100 million for the integration of Engelhard. The company announced the full integration of Engelhard into its global operations. BASF expects the integration to result in annual synergies of €160 million by 2010. According to BASF, approximately half of this amount will be achieved by 2007 and more than 80% by 2008. The company cites a broader global reach, a stronger business presence in regions such as North America, and further extensions into key markets as reasons for the growth.
“The integration allows us to achieve profitable growth by expanding and deepening our existing business relationships in key industries and markets,” said Klaus Peter Löbbe, member of BASF Aktiengesellschaft's board of executive directors of BASF, responsible for North America.
The structure of the new catalysts division, led by Wayne T. Smith, is central to the integration plan, according to the comapny. The division will merge BASF’s existing chemical catalysts business with those catalysts businesses recently acquired. In addition, BASF will combine the respective research activities in its global technology platform. The appearance & performance technologies (APT) and ventures businesses will be integrated into the existing BASF operating divisions of fine chemicals, functional polymers, performance chemicals, agricultural products, BASF future business, and catalysts. By doing this, BASF states that it will create growth opportunities for these operations by extending its regional capabilities through broader access to markets and customers, and by tapping into new business opportunities. BASF will provide assistance for all employees who are laid off as a result of the integration plans.
