Ludwigshafen, Germany -- BASF has reorganises its petrochemicals division into four instead of six business units. The group said the optimised structure will "lead to higher efficiency and effectiveness" and offer potential to serve customers' needs better.
Customers will benefit from a reduced number of interfaces and the broader portfolios of the respective business units. The new clustering of businesses also offers new business opportunities as well as synergy effects from the BASF 'Verbund,' BASF said.
The new business unit Basic Petrochemicals Europe, headed by Dr Uwe Kirchgäßner, consists of the businesses for cracker products and industrial gases as well as alkylene oxides and glycols in Europe. This reflects a focus on the ethylene-based value chain.
The businesses for acrylics as well as alcohols, solvents & plasticizers in Europe will be consolidated in the new business unit Industrial Petrochemicals Europe, headed by Dr Detlef Kratz. This reflects a focus on the propylene- and raffinate -based value chain.
All businesses of the Petrochemicals division in North America will be consolidated in the business unit Petrochemicals North America, headed by Peter Cella. All businesses of the Petrochemicals division in Asia Pacific will be consolidated in the business unit Petrochemicals Asia Pacific headed by Sanjeev Gandhi.
"We aim to focus even more closely on our customers within their respective regional markets and enhance efficiency and flexibility at the same time," said Dr Albert Heuser, President Petrochemicals division. "We want to strengthen the responsibility of the regions considerably this is why we chose to reorganise our division in four regional business units."
BASF said the new setup is based on an analysis of the market and economic situation, which it adds "has fundamentally changed over the last years." Examples of such change are the important BASF investments in Nanjing (China) and Port Arthur (US).