BASF to Shut Down EPS Plants
In light of high overcapacities and low margins in some regions, BASF is focusing its global Styropor (EPS: expandable polystyrene) activities on strategic markets and core products with better profitability.
BASF will shut down the Styropor plants at its sites in Pasir Gudang, Malaysia and Thane, India. The plan is to stop production by the end of the year. Currently a total of 60 and 55 employees work with EPS at Pasir Gudang and Thane, respectively. The combined annual EPS production capacity of the two plants is more than 100,000 metric tons. BASF will work with employees affected by the shutdowns to find the right transition plan.
In South America, BASF is preparing strategic steps. BASF has started the preparation of a carve-out of the Styropor business and production at its sites in Argentina and Brazil. In Chile, BASF is evaluating strategic options for the EPS business and is preparing a divestment of Aislapol, BASF's EPS foam parts producer. The Styropor business in South America has around 80 employees and an annual production capacity of 83,500 metric tons. Aislapol has around 175 employees.
BASF will focus its global Styropor activities on core markets and will further push the growth with Neopor, the silver-gray colored product with improved insulation properties, enhanced by its graphite content. It contributes significantly to energy efficiency in buildings and houses while reducing CO2 emissions. Neopor, which is produced at BASF sites in South Korea and Germany, plays a key role in BASF's strategy to focus on profitable markets and products.
