2007-04-16

Joint press release by BASF and Hansa Chemie International AG

BASF to sell Chemische Fabrik Wibarco GmbH to Hansa Chemie International AG

• BASF divests business with detergent ingredient LAS and precursor LAB
• Hansa Chemie International to invest in the Ibbenbüren site

BASF Aktiengesellschaft has signed an agreement to sell its subsidiary Chemische Fabrik WIBARCO GmbH (Wibarco) to Hansa Chemie International AG (HCI), Zurich, Switzerland. Both companies have agreed not to disclose the transaction price or other financial details. The transaction, which is subject to antitrust approval, is expected to close in July 2007.

Wibarco, located in Ibbenbüren in northern Germany, mainly produces linear alkylbenzene (LAB). LAB is a starting material for linear alkylbenzene sulfonate (LAS), a key component of most modern detergents. Hansa Chemie International will acquire the Ibbenbüren site and the workforce of approximately 80 employees.

“BASF considers the LAB business as non-strategic. Additionally it is not integrated into our Verbund. Our goal was nonetheless to offer it and its employees a positive future. In Hansa Chemie International, we have found a partner that is interested not only in acquiring the business, but also in further developing the Ibbenbüren site,” said Patrick Prévost, head of BASF’s Performance Chemicals division.“Wibarco will be part of Hansa’s core activities, which will open up new long-term perspectives for the business and the site. At the same time, the sale will allow us to focus even more strongly on expanding our strategic product lines for the detergents and cleaners industry.”

“The newly acquired production site is an excellent fit for our growth strategy in chemicals. This acquisition and the simultaneous expansion of Hansa Group’s surfactants business will result in a backward integration in our value chain. The existing LAB plant and the planned construction of a sulfation plant in Ibbenbüren will strengthen our market position in surfactants. The skills and experience of Wibarco’s employees are a crucial competitive advantage for us,” said Khodayar Alambeigi, President of HCI’s Administrative Board.

Wibarco is part of BASF’s Performance Chemicals division, which produces and markets a broad range of high-value chemicals for use in a variety of industries. In 2006, the Performance Chemicals division posted sales of €3.3 billion.

Chemische Fabrik WIBARCO GmbH was founded in 1969 by Wintershall AG, Elektro-Chemie Ibbenbüren and Atlantic-Richfield-Company. A large-scale plant for LAB started operations in 1970. Wintershall AG, a BASF Group company, acquired the shares of Atlantic-Richfield-Company and Elektro-Chemie Ibbenbüren in Wibarco in 1973 and transferred them to BASF in 1989.


BASF – The Chemical Company

BASF is the world’s leading chemical company: The Chemical Company. Its portfolio ranges from chemicals, plastics, performance products, agricultural products and fine chemicals to crude oil and natural gas. As a reliable partner to virtually all industries, BASF’s high-value products and intelligent system solutions help its customers to be more successful. BASF develops new technologies and uses them to meet the challenges of the future and open up additional market opportunities. It combines economic success with environmental protection and social responsibility, thus contributing to a better future. BASF has over 95,000 employees and posted sales of €52.6 billion in 2006. BASF shares are traded on the stock exchanges in Frankfurt (BAS), London (BFA), New York (BF) and Zurich (AN). Further information on BASF is available on the Internet at www.basf.com.

Hansa Chemie International

Hansa Chemie International AG (HCI) is an internationally operating holding company that focuses on the chemical industry. The registered office is in Zurich, Switzerland. The Hansa Group currently holds major stakes in chemical companies in Germany, Switzerland and the Netherlands. Hansa Group AG, which is listed on the German stock exchange (WKN 760 860), is also part of HCI. HCI is interested in ensuring the long-term success and expansion of its chemical sites through strategic investments in manufacturing companies. Virtues such as long-term thinking and
planning, reliability and strong ties to the region as well as pronounced solidarity with staff and customers have enabled this long-lasting success. Further information on Hansa Chemie International is available on the Internet at www.hansainternational.ch.