Although the timing might not be optimal, BASF’s Gareth Rees said the company remained confident that the acquisition and integration of the speciality chemicals business would proceed successfully.
“This is probably not the best time, if we could have chosen, but we have experience in large acquisitions such as this and we are not expecting any problems,” he told CosmeticsDesign.
Preparing the foundations for Ciba integration
Preparations for the integration of the business in the second half of 2009 will include a reorganisation of many of BASF’s divisions.
From April 1, the Care Chemicals Division will combine all businesses related to cleaning, personal care and hygiene, human and animal nutrition and pharma. Ciba’s superabsorbants division, with applications for consumer products such as nappies, will be incorporated into the division.
The Care Chemicals Division currently sits under the umbrella Performance Products, alongside Acrylics and Dispersions and Performance Chemicals.
A new division, Paper Chemicals, will join the fold from April, ready to welcome Ciba’s paper manufacturing segment products later in the year.
The reorganisation of the divisions will allow BASF’s businesses to integrate with the relevant Ciba division and are not related to the restructuring plans the company announced earlier in the year, Rees said.
Decline in business
Last month the company announced that business had failed to pick up after a sluggish run up to Christmas leading to cuts in production at many plants.
Reduced working hours have been introduced for a number of its employees, including 1,500 at its coatings site in Munster, Germany.
The company also announced plant closures in the North America and Asia resulting in 200 job losses.
“The situation remains tough and difficult to predict,” said company chairman Jurgen Hambrecht, back in January.
“We do not expect the economic environment to improve in the coming months.”