6-K UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 OF
THE SECURITIES EXCHANGE ACT OF 1934
January 14, 2003
BASF AKTIENGESELLSCHAFT
(Exact name of Registrant as Specified in its Charter)
BASF CORPORATION
(Translation of Registrant's name into English)
Carl Bosch Strasse 38, LUDWIGSHAFEN, GERMANY 67056
(Address of Principal Executive Offices)
Indicate by check mark whether the Registrant files or will file annual
reports under cover Form 20-F or Form 40-F
Form 20-F X Form 40-F
Indicate by check mark whether the Registrant by furnishing the information
contained in this Form is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes No X
If "Yes" is marked, indicate below the file number assigned to the
Registrant in connection with Rule 12g3-2(b): 82- .
( BW)(BASF)(BF)(BFA.L)(BAS.FK) BASF Strengthens Its Plastics Business
LUDWIGSHAFEN, Germany--(BUSINESS WIRE)--Jan. 14, 2003--BASF
-- BASF to acquire Honeywell's worldwide engineering plastics
business
-- BASF to sell its nylon fibers businesses to Honeywell
BASF Aktiengesellschaft announced today (January 14, 2003) the signing of
definitive agreements for two transactions with Honeywell International, Morris
Township, N.J. BASF has agreed to acquire Honeywell's worldwide engineering
plastics business. In a separate transaction, BASF has agreed to sell its
worldwide nylon fibers business to Honeywell. Through these transactions, BASF
will exit the fibers market and concentrate on its plastics business, which also
includes styrenics, polyurethanes and nylon intermediates.
With the acquisition of the engineering plastics business, BASF will
significantly enhance its position in this market and will be able to offer
customers a wider range of products. Honeywell's engineering plastics business
had sales of approximately $350 million in 2001. Together with BASF's
engineering plastics and nylon intermediate activities, the combined businesses
would have had pro-forma sales of almost $2 billion in 2001.
BASF is selling its nylon fibers business to ensure its long-term
competitiveness as part of a larger entity. BASF's sales in this business were
approximately $350 million in 2001.
BASF will pay Honeywell $170 million in cash and transfer all of BASF's
global nylon fibers business at closing. BASF will receive from Honeywell $80
million within one year of the transaction's close. The two transactions are
expected to close in the course of the first half of 2003, subject to regulatory
approval in several jurisdictions.
"With these portfolio changes, BASF is strategically realigning and
enhancing its market position in plastics. Here, we want to achieve leading
market, service and cost positions in the most important regions. In addition,
we are focusing on those products where we can offer a competitive edge to
generate value both for our customers and us," said Dr. John Feldmann, the
member of the Board of Executive Directors of BASF Aktiengesellschaft
responsible for the Plastics & Fibers segment.
Engineering Plastics Agreement
As a result of this transaction, BASF will enhance its position as a leading
global supplier of engineering plastics. The agreement includes manufacturing
facilities, research and development assets, and sales and technical service
locations worldwide. The business being acquired includes about 500 Honeywell
personnel.
BASF will acquire the global engineering plastics portfolio of Honeywell,
which is primarily comprised of the product line Capron(R) nylon and alloys
(polyamide). These products will complement BASF's engineering plastics
portfolio of Ultradur(R) thermoplastic polyester (PBT), Ultraform(R) acetal
copolymer (POM), Ultrason(R)E polyethersulfone (PES) and Ultrason(R)S
polysulfone (PSU), and Ultramid(R) nylon-based engineering plastics.
The acquisition will enhance BASF's product offerings to customers,
particularly in the automotive, packaging and electrical & electronics
industries. New markets and applications will be opened up to BASF from
Honeywell's top products and excellent customer relationships developed over the
past 40 years.
"With this acquisition, we are bringing together the best teams in the
industry," said Raimar Jahn, President of BASF's Performance Polymers division.
"Combining the resources and capabilities of BASF's and Honey-well's engineering
plastics activities will spur new product and application developments, and
create efficiencies in bringing value-added solutions to customers."
Nylon Fibers Agreement
BASF's nylon fibers business being sold includes the nylon 6 carpet fiber
business which serves the commercial, automotive and residential markets;
textile products including a diversified line of nylon yarns for apparel fabrics
and nylon for automotive headliner fabrics, as well as solution dyed Zeftron(R)
200 nylon for upholstery fabrics.
The transaction includes fiber manufacturing plants, research facilities and
sales offices in North America as well as BASF Hua Yuan Nylon (BHYN) Company
Limited, located in Shanghai, China. The current businesses employ approximately
1,600 BASF personnel.
BASF, as a leading supplier of nylon and its precursors, remains committed
to this market. BASF's nylon and intermediates plants will not be included in
the sale.
About BASF
BASF is the world's leading chemical company. It aims to increase and
sustain its corporate value through growth and innovation. BASF offers its
customers a range of high-performance products, including chemicals, plastics,
coatings systems, dispersions, agricultural products, fine chemicals as well as
crude oil and natural gas. BASF's distinctive approach to integration, known in
German as "Verbund," is its strength. It enables the company to achieve cost
leadership and gives it a decisive competitive advantage in the long term. BASF
acts in accordance with the principles of Sustainable Development. In 2001, BASF
had sales of EUR 32.5 billion (circa $29 billion) and over 90,000 employees
worldwide. BASF shares are traded on the stock exchanges in Frankfurt (BAS),
London (BFA), New York (BF), Paris (BA) and Zurich (BAS). Further information on
BASF is available on the Internet at www.basf.com.
Note for editors:
You can download a photo from BASF's homepage at www.basf.de/pressphotos
under the rubric "plastics."
Forward-looking statements
This release contains forward-looking statements under the U.S. Private
Securities Litigation Reform Act of 1995. These statements are based on current
expectations, estimates and projections of BASF management and currently
available information. They are not guarantees of future performance, involve
certain risks and uncertainties that are difficult to predict and are based upon
assumptions as to future events that may not prove to be accurate. Many factors
could cause the actual results, performance or achievements of BASF to be
materially different from those that may be expressed or implied by such
statements. Such factors include those discussed in BASF's Form 20-F filed with
the Securities and Exchange Com-mission. We do not assume any obligation to
update the forward-looking statements contained in this release.
CONTACT: BASF Corporation, United States
Tim Fitzpatrick
Tel. (973) 426-2305
Fax: (973) 426-2856
E-mail: fitzpat@basf.com
or
Honeywell,
Rich Silverman
Tel: 973 455-4732
E-mail: richard.silverman@honeywell.com
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this Current Report to be signed on its behalf by the
undersigned, thereunto duly authorized.
BASF Aktiengesellschaft
Date: January 14, 2003 By: /s/ Elisabeth Schick
------------------------------------
Name: Elisabeth Schick
Title: Director Site Communications
Ludwigshafen and Europe
By: /s/ Christian Schubert
------------------------------------
Name: Christian Schubert
Title: Director Corporate Communications
BASF Group