BASF acquires Brazil polyamide polymer business

The BASF group has about 22 production sites in South America, nine of them in Brazil, where different products are manufactured, like pigments, dispersions, polyurethanes, catalysts, coatings and many more.

BASF is going to integrate the acquired business into its existing engineering plastics and polyamide polymer business.

"We are very proud of being in Brazil for more than 100 years now. With this acquisition, which is the first regional one in South America, BASF proves its engagement with the Brazilian market and will be a reliable and innovative partner to the polyamide customers," said Alfred Hackenberger, president BASF South America.

The transaction comprises the site and production facilities for the PA 6 product range, as well as engineering plastics compounds at São Bernardo do Campo in the metropolitan area of São Paulo. The polymerization plant has a capacity of roughly 20,000 metric tons per year. Around 100 of the plant's employees will now work for BASF.

Mazzaferro's monofilaments, fishing equipment and household products businesses are not part of the transaction and will continue operations at the Diadema and São Paulo production sites. The transaction is still subject to the post-closing approval of the Brazilian authorities.

When asked why BASF chose the acquisition route instead of building their own plant, the spokesperson said, "With the acquisition of Mazzaferro's existing plants, BASF will share in the growth of the South American polyamide market as soon as possible."

Wolfgang Hapke, president of BASF's performance polymers division, stated in the news release, the acquisition is part of BASF's strategy to strengthen its position in the emerging countries.

"We will thus increase production presence close to our customers," he said. "The demand for polyamide in the automotive and extrusion industry will grow particularly strongly in Brazil. The new site enables us to share in this growth and supply our South American customers with locally manufactured products faster and more flexibly."