London +4420 814 42225
Moscow +7495 543 9194
Kiev +38044 599 2950
info@mrcplast.com

Our Clients

Order Informer

 
Home > News >
 

BASF reaches agreement to sell site in Kankakee, Illinois to One Rock Capital Partners

December 22/2020

MOSCOW (MRC) -- BASF has reached an agreement to sell its manufacturing site in Kankakee, Illinois and the associated businesses of vegetable-oil-based raw material sterols and natural vitamin E, anionic surfactants and esters produced there to an affiliate of One Rock Capital Partners, LLC, a US-based private equity firm, as per the company's press release.

The businesses have around 160 employees including business management and commercial personnel across the US. The transaction is expected to close in the first half of 2021, subject to the approval of the relevant competition authorities. Terms of the transaction were not disclosed.

BASF acquired the site and its businesses from Cognis in 2010. It is operated by the Nutrition & Health and the Care Chemicals divisions of BASF. Based on a recent careful market review it was determined that the site is no longer a strategic fit for BASF.

With this divestment, we are sharpening the profile of our human nutrition business, to which we remain firmly committed, with focus on creating superior food ingredients and formulations that meet challenges and needs of continuously evolving lifestyles, said Dr. Melanie Maas-Brunner, President of BASFs Nutrition & Health division. This is a further step to optimize the global manufacturing footprint of our division, said Ralph Schweens, President of BASFs Care Chemicals division. I am glad that, with One Rock Capital Partners, we have found a promising new home for our Kankakee site and the team.

During recent years, the Kankakee site has established a strong reputation for delivering natural, high-quality, mission critical products to its global customer base. We look forward to building on its success and providing customers with exceptional service and new innovations, said Tony W. Lee, Managing Partner of One Rock Capital Partners. Our intention is to transform the business into a strong standalone enterprise poised for significant growth, added R. Scott Spielvogel, Managing Partner of One Rock Capital Partners.

BASF continues to produce anionic surfactants for the home care, personal care and industrial formulators industries at its other sites worldwide.

As MRC reported before, German chemicals maker BASF said in early November it had put a project to build a petrochemicals complex in India worth up to USD4 billion on hold due to the economic uncertainty caused by the COVID-19 pandemic. BASF signed a memorandum of understanding with Abu Dhabi National Oil Company (ADNOC), Adani Group and Borealis AG in October 2019 to evaluate a collaboration to build the chemical site in Mundra, in Indias Gujarat state.

Ethylene and propylene are feedstocks for producing polyethylene (PE) and polypropylene (PP).

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,760,950 tonnes in the first ten months of 2020, up by 3% year on year. Only high density polyethylene (HDPE) and linear low density polyethylene (LLDPE) shipments increased. At the same time, PP shipments to the Russian market reached 978,870 tonnes in  January-October 2020 (calculated using the formula: production minus exports plus imports minus producers' inventories as of 1 January, 2020). Supply of exclusively of PP random copolymer increased.

BASF is the leading chemical company. It produces a wide range of chemicals, for example solvents, amines, resins, glues, electronic-grade chemicals, industrial gases, basic petrochemicals and inorganic chemicals. The most important customers for this segment are the pharmaceutical, construction, textile and automotive industries.


mrcplast.com
Author:Margaret Volkova
Tags:PP, PE, LLDPE, PP random copolymer, propylene, HDPE, ethylene, petrochemistry, BASF, India, Russia, USA.
Category:General News
|
| More

Leave a comment

MRC help

 


 All News   News subscribe