BASF takes further decisive steps to integrate construction chemicals business

Following the acquisition of Degussa's construction chemicals business effective July 1, 2006, BASF announced on December 15 further steps to integrate the business into its global operations.

BASF initially placed the former Degussa business in the newly established Construction Chemicals division after the closing of the transaction. Following the current reorganization, this division will consist of five regional business units effective January 1, 2007: Construction Systems Europe, Admixture Systems Europe, Construction Chemicals NAFTA, Construction Chemicals Asia Pacific and Construction Chemicals South America. Administrative and functional activities will be largely transferred to BASF's existing regional platforms. The headquarters of the Construction Chemicals division will move from Trostberg to Ludwigshafen.

BASF expects to achieve synergies of approximately 100 million euros per year by 2010 as a result of the organizational changes and other measures such as bundling of procurement and standardization of IT systems. The integration, which will involve a reduction of about 200 positions worldwide, is estimated to be associated with one-time costs of approximately 75 million euros.