Segment Profile

Divisions

Dispersions & Pigments

Raw materials used to formulate products in the coatings, construction, paper, printing and packaging, adhesives and electronics industries

Performance Chemicals

Customized products for various customer industries such as chemicals, plastics, consumer goods, energy and resources, as well as automotive and transportation

Sales

Factors influencing sales

Income from operations before special items

Million €

How we create value – an example

OPPANOL^® B12 BMBcert™
First polyisobutene derived from 100% renewable resources

Value for the environment

Reduces greenhouse gas emissions by

up to 85%

Value for BASF

Annual volume of the relevant market in Europe

>15,000 metric tons

More and more industrial businesses are actively working to reduce their carbon footprint, and sustainable production is also playing an increasingly important role for customers when choosing which product to buy. Its properties make OPPANOL^® a key building block for applications such as chewing gum, window sealants and adhesives. OPPANOL^® improves product processing for our customers and makes their end products more efficient. BASF offers a sustainable alternative to conventional, fossil-based products with the new-generation polyisobutene OPPANOL^® B 12 BMBcert™. By using 100% renewable resources like biogas in the production of OPPANOL^® B 12 BMBcert™, BASF reduces greenhouse gas emissions by up to 85% compared with conventional production processes – without affecting product performance.

BASF has been marketing and developing polyisobutene for almost 90 years, setting standards on the market for this unique product. Since being launched in 1931, OPPANOL^® has been a key competitive differentiator in our customers’ products, helping them to meet their targets. OPPANOL^® offers solutions for a wide range of different applications. Formulations that provide a steam barrier, electrical insulation, good adhesion and flexibility at low temperatures (cold flow) are possible, depending on the requirements. The new and improved OPPANOL^® B 12 BMBcert™ makes BASF the first company to use the biomass balance approach to produce and offer this product based on 100% renewable resources. The European market for OPPANOL^® B 12 BMBcert™ has a volume of over 15,000 metric tons per year.

Strategy

• Tailor-made products and solutions improve our customers’ applications and processes
• Global presence ensures reliable supply to customers in all regions

We take on the challenges posed by important future issues, especially those resulting from population growth: scarce resources, environmental and climatic stressors, as well as the desire for better quality of life. To achieve this, we focus on research and development and maintain close relationships with leading companies in our customer industries. We position ourselves globally to reliably supply customers in all regions. We invest in the development of innovations that enable our products and processes – as well as our customers’ applications and processes – to make a contribution to sustainability, for example, by allowing resources to be used more efficiently.

Through our focus on the development of sustainable solutions, our products create additional value for our customers and enable differentiation. We develop new solutions together with our customers and strive for long-term partnerships that create profitable growth opportunities for both parties. To achieve this, we draw on our innovative strength and our many years of experience and in-depth industry expertise. Efficient production setups, backward integration in our Production Verbund’s value chains, capacity management, and technology and cost leadership are also essential.

We support our customers by serving as a reliable supplier with consistently high product quality, good value offerings and lean processes. Through our in-depth application knowledge and technological innovations, we strengthen customer relationships in key industries.

We are increasing global production capacity for the antioxidant Irganox^® 1010 by 40% through projects to expand production at our sites in Jurong, Singapore, and Kaisten, Switzerland. With the start of production in Kaisten in 2019 and Jurong in 2021, BASF aims to better serve the growing demand from customers in Asia and Europe, the Middle East and Africa. In addition, we plan to increase production capacities for the antioxidant Irganox^® 1520L by 20% at the Pontecchio Marconi site in Italy. The expansion is scheduled to come on stream in the first quarter of 2021.

To continue to provide a reliable supply of high-quality dispersions solutions in the growing ASEAN, Australian and New Zealand markets, we have doubled the production capacity for acrylics dispersions in Pasir Gudang, Malaysia. The additional capacities started up in January 2021.

We expanded our dispersions portfolio at our site in Huizhou, China, to better serve the fast-growing packaging industry in southern China. The expansion complements our production capacities in Shanghai, China, reduces lead times and improves raw material supply for our customers. Production capacities for water-based polyurethane dispersions at our Castellbisbal site in Spain were also expanded to meet rising demand.

In July and August 2020, we announced a strategic partnership with IntelliSense.io and a strategic investment by BASF in the company to combine expertise in mineral processing, ore beneficiation chemistry and industrial AI technology.

On August 29, 2019, we reached an agreement with DIC, Tokyo, Japan, on the acquisition of BASF’s global pigments business. The purchase price on a cash and debt-free basis is €1.15 billion. The assets and liabilities to be divested were reclassified to a disposal group in the Dispersions & Pigments division as of this date. The transaction is expected to close in the first half of 2021, subject to the approval of the relevant competition authorities.