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10-19-2006

BASF: Renewed Strength in North America

BASF announced that it is the second largest chemical company in North America in terms of sales and that it has improved its profitability over the last five years significantly. The integration of Engelhard, Degussa Construction Chemicals and Johnson Polymers is proceeding smoothly and according to schedule. Furthermore, the company has achieved annual fixed cost savings of USD 400 million ahead of its planned target of mid-2007. The savings measures are part of a two-phase restructuring program initiated in 2002 to increase profitability. BASF is pursuing a course of profitable growth in North America through investments and aqcisitions and plans to spend over USD 500 million per year on capital expenditures in the region in 2006 and 2007.

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