General
Information
Last Update:
Mar. 10, 2011
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Part of the audited Consolidated Financial Statements and Management´s Analysis

Segment profile

Innovative, fast-growing and cyclically resilient

The Performance Products segment consists of the Dispersions & Pigments, Care Chemicals, Nutrition & Health, Paper Chemicals and Performance Chemicals divisions. Our customers use our products and services to make their production processes more efficient as well as to give their products an improved application profile and special characteristics to design, protect and maintain surfaces. Care Chemicals and Nutrition & Health offer high-performance products for cleaning, for cosmetics and for better nutrition.

Segment strategy

  • Specialties: innovation, close relationships to leading customer companies, expertise in applications and development
  • Standard products: efficient production structures in the Verbund, technology and cost leadership
  • Significantly strengthened market position with Cognis acquisition; now market leader in personal care ingredients

Specialties make up a major part of our product range. Key success factors are innovations, close relationships with leading companies in our customer industries as well as special expertise in applications and development. Our products create additional value for our customers, which allows them to stand out from their competitors. This is why we prefer to develop new solutions together with our customers and strive for long-term collaborations which create profitable growth opportunities for both sides.

We have a different business model for standard products, such as dispersions for paper coatings or vitamins. Here, efficient production structures within the BASF Verbund, capacity management as well as technology and cost leadership are crucial. We support our customers by being a reliable supplier with lean processes, consistent product quality and a good price/performance ratio.

A central element of the value-adding strategy is the active management of our business and product portfolio. We expand the share of innovative, cyclically resilient and fast-growing businesses through acquisitions and divestitures. In April 2010, we completed the structural integration of the businesses acquired from Ciba as planned. At the end of 2010, the synergies from the combined businesses had already reached more than €350 million. By the end of 2012, they will rise to more than €450 million annually. With the acquisition of Cognis on December 9, 2010, we have further strengthened the Performance Products segment and added products to the portfolio that are based on renewable raw materials. This deal has significantly strengthened our position in some markets, particularly for personal care ingredients where we are now the market leader.

In the Performance Products segment, we aim for long-term profitable growth. While we are actively expanding some business activities, in other areas we are focusing on the implementation of restructuring and repositioning plans. To this end, we are defining and implementing new strategies and appropriate business models.

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Capital expenditures

 

 

Location

Project

Additional annual capacity through expansion (metric tons)

Total annual capacity (metric tons)

Startup

Antwerp, Belgium

Expansion superabsorbent

25,000

 

2011/2012

Bahrain

Construction plastic additives

 

n/a

2012

Freeport, Louisiana

Expansion superabsorbent

35,000

 

2011/2012

Huizhou, China

Construction dispersions
(XSB and acrylate)

 

100,000

2012

Ludwigshafen, Germany

Construction chelating agent

 

n/a

2010

 

Expansion methane sulfonic acid

20,000

30,000

2012

 

Expansion polyisobutene

25,000

40,000

2010

 

Construction L-menthol

n/a

n/a

2012

Nanjing, China

Construction cationic polyacrylamides

 

20,000

2012

 

Construction quaternized cationic monomers (DMA3/DMA3Q)

 

40,000

2012

 

Construction nonionic surfactants

 

60,000

2011

 

Construction superabsorbent

 

to be determined

to be determined

Capital expenditures at Cognis

 

 

 

 

Jinshan, China

Alkyl polyglucoside surfactants (APG surfactants)

n/a

n/a

2010

Kuala Lumpur, Malaysia

Application laboratory for food supplements

 

 

2010

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