November 6, 2006
BASF announces full Engelhard integration
Chemical giant BASF announced the full integration of Engelhard into its global operations.
The former acquired the latter on June 6 this year.
The integration could result in annual synergies of EUR 160 million (US$200 million) by 2010, with almost half of the amount proposed to be achieved by 2007 and more than 80 percent by 2008.
However, the flip side is that the integration would lead to a reduction of about 800 positions, the majority being in the US. The one-time cost associated with the integration of the former Engelhard business is estimated to be approximately EUR 100 million (US$100 million).
Some of the major developments resulting out of the integration include the catalysts division and major related research activities to be located in Iselin, New Jersey, while BASF to retain its headquarters in Florham Park, New Jersey. Central to the integration plan is the structure of the new catalysts division led by Wayne T. Smith, which would merge the company's existing chemical catalysts business with those recently acquired.
The Appearance & Performance Technologies (APT) and Ventures businesses would be integrated into the existing BASF operating divisions of fine chemicals, functional polymers, performance chemicals, agricultural products, BASF future business, and catalysts.