BASF to acquire partial TDI business of Ciech
BASF has entered into an agreement with Ciech to acquire a portion of the company's global TDI (toluene diisocyanate) business for an undisclosed sum.
As part of the agreement, BASF will takeover parts of Ciech's worldwide TDI business, excluding Ciech's Poland-based subsidiary Zachem's production facility.
Both companies will work closely to ensure effective transition of supply agreements and support services for Ciech's TDI customers.
BASF Polyurethanes division president Raimar Jahn said the acquisition marks the company's commitment to the TDI markets in Europe, the Middle East, Africa and worldwide.
''BASF's strong commitment to the TDI business is also illustrated by the construction of the world's largest single-train TDI plant in Ludwigshafen,'' Jahn added.
Ciech Management Board president Dariusz Krawczyk said customers will benefit from BASF's knowledge and experience in the polyurethanes market and its strong global set-up.
TDI, which is a key component for the polyurethanes industry, is largely used in the furniture segment and automotive industry.
BASF supplies basic products for polyurethanes and operates TDI plants in Geismar, Louisiana; Yeosu, Korea; Caojing, China and Schwarzheide, Germany, with a new plant at Ludwigshafen scheduled to open in 2014.
The acquisition, which is subject to approval by the appropriate antitrust authorities, is expected to be finalised in the first quarter of 2013.