With a view to future growth markets for paper chemicals and dyestuffs in China, Indonesia and India, BASF’s Paper Chemicals division will reorganize its global business structures. The business in optical brighteners for paper is to be exited in Europe, and it is planned to close the corresponding production operations at the site in Grenzach, Germany.
In addition, BASF intends to relocate paper dye production from Grenzach to Ankleshwar, India. In the course of the relocation, the paper dye product range is to be reduced. Dr. Fred Baumgartner, head of BASF’s Paper Chemicals division, commented: “Currently, paper chemicals are a difficult business to be in. Paper manufacturing is increasingly concentrated in Asia’s emerging markets, which is where future growth in the paper industry will originate. Our measures are a further important step toward adjusting production structures to changing market conditions and thus toward ensuring the profitability of our paper chemicals business in the long term.”
BASF plans to focus the Grenzach site squarely on the production of ingredients for the cosmetics and personal care industry in the future. Pigments for the electronics and coatings industries will continue to be produced in Grenzach as well.