BASF and Astra Polymer Compounding Co., Ltd., Kingdom of Saudi Arabia, have decided to discontinue plans for a joint venture to produce customer specific antioxidant blends (CSB) in the Middle East Region. The joint venture plans were based on an agreement between Astra Polymer and the Plastic Additives business of former Ciba AG which has been acquired by BASF in 2009. The termination of the joint venture plans will have no impact on the existing tolling agreement between the companies to produce customer specific antioxidant blends for the region.
"We are convinced of the strategic importance of the Middle East Region and the need for a local production unit for customer specific blends, says John Frijns, Senior Vice President Plastic Additives Europe/EAWA at BASF. "A thorough evaluation following the integration of the legacy Ciba Plastic Additives business into BASF has furnished new options that will deliver more value to both, our customers and BASF", Frijns explains.
BASF is committed to support polymer growth in the Middle East with local production as well as the services that customers demand in the Middle East Region. The company is currently finalizing its evaluation of several investment options for the production of customer specific antioxidant blends.