BASF to Sell its Styrodur XPS Insulation Business to BACHL
BASF to Sell its Styrodur XPS Insulation Business to BACHL

BASF to Sell its Styrodur XPS Insulation Business to BACHL

  • 09-Jan-2025 11:45 PM
  • Journalist: Lucy Terry

BASF has announced the sale of its Styrodur business to Karl Bachl Kunststoffverarbeitung GmbH & Co. KG (BACHL) to sharpen its focus on expandable polystyrene (EPS) products. BACHL is a leading German insulation material manufacturer and long-time Styrodur distribution partner. The agreement, signed by both companies on January 9, encompasses the Styrodur brand and its associated operations.

Styrodur is a well-established brand of extruded polystyrene (XPS) insulation, known for its high performance in various construction applications. BACHL, with its extensive experience in XPS production and distribution, is positioned to seamlessly integrate the Styrodur business into its existing operations.

The sale includes approximately 50 BASF employees involved in Styrodur production, marketing, and sales. BASF has confirmed that these employees will remain with the company, indicating a smooth transition and minimal disruption to the workforce.

The transaction is subject to regulatory approvals from relevant competition authorities, with completion anticipated by mid-2025. Both parties have agreed to maintain confidentiality regarding the financial details of the acquisition.

This strategic divestiture reflects BASF’s commitment to concentrating its resources on its core EPS business, particularly its well-known Neopor and Styropor brands. Klaus Ries, Head of Business Management Styrenics Europe at BASF, emphasized this strategic direction, stating, “With the sale of the Styrodur business, BASF is consistently focusing its strategy on expandable polystyrene with our well-known brands Neopor and Styropor.”

This strategic shift was further underscored by BASF’s announcement in October 2024 of a substantial expansion of Neopor production capacity at its Ludwigshafen site. The expansion will increase production by 50,000 tons annually, reaching a total of 250,000 tons per year starting in early 2027.

Dr. Ries expressed confidence in BACHL’s ability to steward the Styrodur brand into the future, stating, “We are convinced that BACHL’s experience and expertise in the XPS market will provide an optimal path into the future for the Styrodur brand and that the agreement reached will further strengthen our partnership.” This statement highlights the existing strong relationship between the two companies and suggests a collaborative approach to the transition.

The divestiture of the Styrodur business allows BASF to streamline its portfolio and dedicate resources to its core strengths in EPS, while BACHL gains a valuable brand and expands its market presence in the XPS insulation sector. This strategic move is expected to have a significant impact on the insulation materials market in Europe, with both companies poised for continued growth and innovation. The transaction represents a strategic realignment for BASF, reinforcing its commitment to the EPS market while ensuring a smooth transition for the Styrodur brand and its associated operations under BACHL’s leadership.

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