BASF to Reorganize Business, Adds Sixth Functional Solutions Segment

BASF AG said it will reorganize its business to have six divisions, up from its current five, effective Jan. 1, adding a "Functional Solutions" division that will focus on clients from the automotive and construction industries. On top of the new segment, the German chemical company will consist of the following units: Chemicals, Plastics, Performance Products, Agricultural Solutions and Oil & Gas, it said in a statement.

From AFX News Limited

LUDWIGSHAFEN, Germany — BASF AG said it will reorganize its business to have six divisions, up from its current five, effective Jan. 1, adding a "Functional Solutions" division that will focus on clients from the automotive and construction industries.

On top of the new segment, the German chemical company will consist of the following units: Chemicals, Plastics, Performance Products, Agricultural Solutions and Oil & Gas, it said in a statement.

"We are focusing our businesses even more closely on our customers," Chief Executive Juergen Hambrecht said in the statement.

The sixth division will mainly supply catalytic converters and coatings to car makers and construction chemicals to builders.

Among other changes, BASF will transfer its food additives, drug ingredients and animal feed products business from its Agricultural Products division to a new "Care Chemicals" subdivision, which it will fold into the existing Performance Products division.

The Care Chemicals unit will also include the production of detergents and cleaners, currently part of Performance Chemicals.

Within the Plastics division, the specialty plastics and foams businesses will be moved from the Styrenics subdivision over to the Performance Polymers unit.

Cost savings are not among the primary goals of the revamp and job cuts will not be part of the move, spokesman Michael Grabicki said.