BASF to Restructure Animal and Human Nutrition Businesses

09/10/06 BASF is taking a series of measures to refocus its animal and human nutrition business in its Fine Chemicals division. “Our market environment has changed drastically in the past few years”, said Dr. Wolfgang Büchele, head of the Fine Chemicals division. “It has become more competitive and prices for many products have fallen significantly.”

In order to optimally utilize the various synergies between the business units Human Nutrition and Animal Nutrition and to serve the market more efficiently, the two businesses are being combined to form the unit Nutrition as of November 1, 2006. “The new setup and the associated synergies allow us to mount a speedier and more flexible response to market requirements”, stated Büchele.

In addition, BASF’s animal nutrition station in Offenbach (Rheinland-Palatinate), Germany, will cease operations in the second quarter of 2007. The station was established in 1985 in order to execute development for nutritional additives in animal nutrition. BASF was pioneering in having such a facility. At the station, tests are carried out to analyze nutritional benefits and dosage forms of BASF vitamins, carotenoids and other additives in feeding animals. “Today the technology in animal nutrition has spread to the extent that there is a generally accepted standard of additive technology, also available to customers,” explained Büchele. “Test runs for products are now done by many other service providers.”

The reorganization of the Nutrition business and the closure of the animal nutrition station in Offenbach will lead to a reduction of 73 positions at BASF Aktiengesellschaft. The affected employees will be offered other positions at BASF or voluntary redundancy packages.

“By refocusing our nutrition activities, we are in a better position to serve the market in a cost-effective manner and improve our situation in the animal and human nutrition business in the long term,” said Büchele.