BASF announced March 25, 2011 its integration plans for Cognis. BASF expects to achieve an additional EBIT of €275 million (10.6% of Cognis’ 2009 net sales) through the integration. To achieve the growth targets, 230 additional jobs will be created worldwide, mainly in the Care Chemicals division.
At the same time, BASF plans to reduce 680 positions due to overlaps in functional and administrative units as well as measures to improve efficiency. This means an overall reduction of 450 positions in the BASF Group, most of which will be realized by the end of 2012. The employees will be offered a suitable position within BASF whenever possible.
BASF plans to maintain 26 of the 28 Cognis production sites. Hythe, UK, will be sold. For Tromsoe, Norway, future strategic options will be evaluated. Of Cognis’ 37 non-production sites, 26 will be consolidated with existing BASF sites or exited, nine will remain and two are still under review.
“We see great potential for profitable growth in our Performance Products segment,” said Dr. John Feldmann, member of BASF’s Board of Executive Directors, responsible for BASF’s Performance Products segment and the Cognis integration. “Through the acquisition, we have strengthened our activities in attractive growing markets such as personal and home care, nutrition and health, coating additives synlubes and mining chemicals. The businesses complement each other excellently and allow us to offer our customers a comprehensive portfolio of products and solutions from both renewable and petro-based chemistry.”