Sabic ending joint venture with BASF

Resin supplier Sabic Innovative Plastics has signed an agreement to divest itself of its share in a 12-year joint venture to produce polybutylene terephthalate (PBT) with BASF.

The production capacity of the joint venture is 100,000 metric tons per year.

The transfer is expected by December 31st, 2007, subject to regulatory approvals.

According to Sabic, the re-alignment of resources will allow it to focus on different PBT technologies including resins based on terephthalic acid (TPA) feedstocks and iQ PBT resin.

This was an important strategic decision for our company, which will enable us to better support our customers here in Europe and across the globe with new and innovative PBT materials, said Heiner Markhoff, president of Sabics European division. As we accelerate the development of these products, we also will ensure an uninterrupted source of supply.

With the purchase of Sabics shares in the production joint venture, we are able to satisfy our customers rising PBT demand and we are thus making a long-term investment in this field of activity, said Willy Hoven-Nievelstein, head of BASFs business unit for engineering plastics in Europe. Through this acquisition, we are also consolidating our high ranking in the market for engineering plastics.