BASF raises prices, takes steps to cut costs

BASF will raise prices for its Ultradur polybutylene terephthalate (PBT) and Petra polyethylene terephthalate (PET) resins effective mid-March, and has announced a new subsidiary to engage in the buying and trading of key raw materials, such as benzene.
The goal of BASF Intertrade Corporation (BIT) will be to enable the company’s chemical manufacturing operations to enhance their cost efficiencies.
“By launching BIT Corporation, we are placing ourselves on both sides of the market,” said Richard Carter, senior vice-president, procurement for BASF in North America. “Ultimately, this will help ensure our ability to obtain benzene and other key raw materials at a competitive cost.”
The new operation will be based in Houston, TX, and is scheduled to be fully operational in the second quarter.
BASF will raise prices for its Ultradur polybutylene terephthalate (PBT) resins by US$0.07 per pound, and Petra polyethylene terephthalate (PET) resins by US$0.05 per pound for non-flame retardant grades and US$0.10 per pound for flame-retardant grades, in the United States and Canada, effective March 15, 2005.
“The North American plastics industry continues to endure unprecedented costs for raw materials and tight supply situations in many key areas. It is necessary for us to offset the impact of these conditions in order to continue to provide our customers with a consistent supply of high quality materials and technical support services,” said Susanne Mueller, director of sales for BASF’s Engineering Plastics business in North America.