Higher polymers prices helped BASF’s plastics division to raise profits last year.
Although volumes only rose by 1% in 2005, sales surged by 11% to E11.7bn and profitability (ebitda) rose 26% to exceed E1.5bn.
Performance polymers such as polyamides performed strongly, growing 12%, while polyurethane sales grew by nearly 23%. Styrenics however were flat due to a decline in demand.
The temporary shutdown of BASF’s styrene plant in Ludwigshafen at the end of last year will affect that business throughout the first quarter of 2006.
However, BASF is in no hurry to turn the plant back on. “This is done on purpose,” said Jürgen Hambrecht chairman of the board of executive directors of BASF. “There is now overcapacity – we want to stabilise the market with this measure.”
BASF group reported record sales of E42.7bn generating an ebitda of E8.2bn for 2005.
