BASF realigns chemicals segment to improve operational efficiency
BASF has optimised its organizational structure to better serve its customers and enhance its operational capabilities and technology.
As part of the strategy, the number of segments will be reduced from six to five and the number of divisions from 15 to 14, which will be effective from 1 January 2013.
BASF board of executive directors chairman Dr. Kurt Bock said: ''In the new organization, the bundling of product groups with the same business model will help management to better focus on the success factors necessary to be a market leader, both in meeting customer needs and in operational excellence."
BASF will create a new division in the present Functional Solutions segment and it will be renamed Functional Materials and Solutions, to handle downstream plastics from the current Performance Polymers and Polyurethanes divisions.
The new division will target automotive, construction, electrics and electronics segments and product groups will include polyurethane systems, engineering plastics, thermoplastic polyurethanes, Cellasto, biopolymers, functional foams, Styropor, Neopor, Styrodur and epoxy systems.
The chemicals segment will continue to develop BASF's production in a profitable manner while the Intermediates division will focus mainly on the C1 value chain with product groups such as amines, butanediol and derivates (incl. PBT), polyalcohols, organic acids and specialties, methanol, formaldehyde, life science intermediates and Oase gas treatment solutions.
BASF has also created a Monomers division, to handle product groups from the current Inorganics division with many of the large-volume monomers and basic polymers from the present performance polymers and polyurethanes divisions.
As part of the organizational structure, the Petrochemicals division will be expanded to include propylene oxide, therefore binding all major derivatives of propylene together with other cracker products. The Performance Products, Agricultural Solutions and Oil and Gas segments will remain intact, according to the company.