BASF has achieved annual fixed cost savings of US$400 million ahead of its planned target of mid-2007, as part of a two-phase restructuring program initiated in 2002 to increase profitability. The company plans to achieve profitable growth in North America through investments and acquisitions and spending of over US$500 million pa on capital expenditures in 2006 and 2007. BASF is demonstrating renewed strength in North America as a result of its ambitious restructuring program, making it the second largest chemical company in terms of sales.
The integration of Engelhard, Degussa Construction Chemicals and Johnson Polymer is proceeding smoothly as per schedule and will help BASF grow faster, reduce the cyclicality of its earnings and supplement product offerings. BASF's capital expenditure projects in North America include:
· A new superabsorbent polymer facility in Freeport scheduled to start operations in 2007. Upon completion, this will allow closure of less efficient sites in Aberdeen, Mississippi, and Portsmouth, Virginia.
· Construction of a nylon intermediates unit at Freeport, to to start operations in 2007 that will enable the closure of a smaller facility in North Carolina.
· Investment of US$60 million to expand production capabilities of plasticizers at Pasadena, Texas.
· Investment of US$125 million in expansion of its polyol plant in Geismar, Louisiana, scheduled to start up in 2008.
· A new alkylethanolamines plant, in Geismar, scheduled to start operations in 2007.
09-Oct-06 
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