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BASF reorganizes its paper chemicals business

LUDWIGSHAFEN, Germany -- BASF is changing the organizational set-up of its paper chemicals business to strengthen its competitiveness and better meet the needs of the paper industry. BASF is a leading global supplier to the paper industry and offers a comprehensive range of chemical products for paper manufacturing and coating.

As of 1 January 2015, the Paper Chemicals division will be dissolved. The current headquarters of the Paper Chemicals division in Basel, Switzerland will be closed by the end of 2014. Overall, there will be a reduction of about 50 positions globally as a result of the implementation of the new set-up. The business will be continued in other divisions of the Performance Products segment as follows:

The wet-end chemicals and kaolin businesses will be integrated into the Performance Chemicals division, supplementing the polyacrylamide value chain. A new global business unit "Paper Chemicals" will be established within the Performance Chemicals division. BASF is evaluating strategic options for its paper hydrous kaolin business.

The paper dispersions business and the Center for Sustainable Paper Packaging (CSPP) will be integrated into the division Dispersions & Pigments, supplementing the latex dispersions value chain.

"Integrating the paper chemicals business along existing value chains will allow BASF to optimally steer plant capacity and leverage the advantages of the BASF Verbund. This will strengthen our businesses and further increase the competitiveness of our Performance Products segment," said Michael Heinz, member of the Board of Executive Directors of BASF SE and responsible for the Performance Products segment.

BASF remains committed to the paper chemicals industry by providing sustainable solutions and technical expertise. There will be no impact on supply security and service for the customers. Sales with paper chemicals were €1.44 billion in 2013.

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