Chemical giant BASF and British group Ineos on May 30 announced the formation of a new joint venture to produce styrene, used to make plastics, turning their respective units into a separate entity.
The resulting company, Styrolution, combines the two partners' global business activities in styrene monomers, polystyrene and other styrene-based products. Styrenics are mainly used for household and office products.
"Styrolution will be capable of meeting the long-term needs of a rapidly changing market as it competes effectively with large-scale producers from Asia and the Middle East," said Jim Ratcliffe, chairman of INEOS Capitahe in a joint statement with BASF vice chairman Martin Brudermueller.
Last November BASF and Ineos announced plans to form the joint venture with annual sales of five billion euros (US$6.5 billion), based in Frankfurt.
The expandable polystyrene sector is not part of the transaction, and will remain within the respective companies.
BASF employs around 1,460 people in its styrenics units, while Ineos has some 2,200 people working in the field.
Copyright Agence France-Presse, 2011