Significant Events

Corporate Targets

At a Capital Markets Day on March 26, 2021, BASF presented its roadmap to climate neutrality. BASF is setting itself even more ambitious goals than in the past and wants to achieve net zero emissions by 2050. Based on the most recent progress in developing low-emission and CO2-free technologies, the company is also significantly raising its medium-term 2030 target for reductions in greenhouse gas emissions: BASF now wants to reduce its greenhouse gas emissions worldwide by 25% compared with 20181 – and to achieve this despite targeted growth and the construction of an integrated Verbund site in Zhanjiang, China. Overall, BASF plans to invest up to €1 billion by 2025 to reach its new climate target and a further €2 billion to €3 billion by 2030.

A key way to further reduce CO2 emissions is to replace fossil electricity with emission-free electricity. BASF and Vattenfall therefore announced on June 24, 2021, the signing of a contract for BASF’s purchase of 49.5% of Vattenfall’s wind farm, Hollandse Kust Zuid (HKZ). The purchase price is €0.3 billion. Including BASF’s contribution to fund the construction of the wind park, BASF’s total commitment amounts to around €1.6 billion. The transaction is expected to close in the fourth quarter of 2021, subject to the approval of the relevant authorities. BASF intends to reduce its investment by selling shares to a financial co-investor.

Changes on the Board of Executive Directors

Wayne T. Smith left BASF’s Board of Executive Directors as of May 31, 2021. Smith had been a member of the Board of Executive Directors since 2012 where he was most recently responsible for Monomers, Performance Materials, Petrochemicals, Intermediates, Process Research & Chemical Engineering as well as North America. Michael Heinz took over for Smith on June 1, 2021, while retaining responsibility for South America. Dr. Melanie Maas-Brunner assumed the tasks in the divisions, European Site & Verbund Management, Global Engineering Services and Corporate Environmental Protection, Health & Safety, as well as the role of BASF SE’s Industrial Relations Director from Heinz on the same date. She has been serving as Chief Technology Officer since February 1, 2021, with responsibility for the three divisions, Advanced Materials & Systems Research, Bioscience Research, Process Research & Chemical Engineering, as well as for BASF New Business.


BASF and Hunan Shanshan Energy announced on May 20, 2021, that they had agreed to form a BASF majority-owned joint venture (BASF: 51%; Shanshan: 49%) to produce cathode active materials (CAM) and their precursors (PCAM) in China. Through this joint venture, BASF is further strengthening its position in Asia to create an integrated global supply chain for customers in China and worldwide. After the planned production startup of cathode active materials in Europe in 2022, BASF will be the first company with CAM capacities in all major markets. The transaction closing is targeted for later this summer following the approval of the relevant antitrust authorities.


Following the approval of all relevant antitrust authorities, BASF concluded the sale of its manufacturing site in Kankakee, Illinois, to an affiliate of One Rock Capital Partners, LLC, a U.S.-based private equity firm, on May 31, 2021. The agreement includes the associated businesses of vegetable-oil-based sterols and natural vitamin E as well as anionic surfactants and esters produced at the Kankakee site. Branded as Kensing, the newly formed company has around 190 employees.

As announced on June 16, 2021, the shareholders of Wintershall Dea – BASF and LetterOne – decided to postpone the initial public offering to a later date due to current market conditions. The IPO was previously planned for the second half of 2021, subject to market conditions.

Following the fulfillment of clearance conditions, BASF closed the divestiture of its global pigments business to the Japanese fine chemical company, DIC, on June 30, 2021. The purchase price on a cash and debt-free basis is €1.15 billion. BASF and DIC had signed an agreement on the acquisition of BASF’s global pigments business with approximately 2,600 employees on August 29, 2019. The Dispersions & Pigments division was renamed Dispersions & Resins as of July 1, 2021 following the transaction closing.

Events after June 30, 2021 (Events after the reporting period)

BASF and Clayton, Dubilier & Rice announced on July 6, 2021, the signing of an agreement to sell Solenis to Platinum Equity, a private equity company based in Los Angeles, California. The transaction implies an enterprise value for Solenis of $5.25 billion. That amount includes net financial debt of around $2.5 billion, subject to any adjustments at closing. Since February 1, 2019, BASF has held a 49% share in Solenis and has reported its share in the company using the equity method; 51% of the shares are held by funds managed by Clayton, Dubilier & Rice, and by Solenis management. Pending approval by the relevant authorities, the closing of the transaction is expected before the end of 2021.

On July 9, 2021, BASF provided advance notice that sales in the second quarter of 2021 totaling €19,753 million were considerably above the prior-year quarter, which had been negatively impacted by the coronavirus pandemic, and above analyst estimates. EBIT before special items and the BASF Group’s EBIT were also considerably above market expectations as well as the weak prior-year quarter caused by the pandemic. As a result of the strong business development in the first half of 2021 and of the considerable increase in earnings expectations in the Chemicals and Materials segments, the forecast for the 2021 business year was revised.

1 The new emissions target corresponds to a reduction of around 60% compared with 1990 and willl surpass the European Union’s target of –55%.