BASF Will Close Asian Resin Plants

BASF is closing plants in Pasir Gudang, Malaysia, and Thane, India, that make its Styropor expandable polystyrene (EPS), used in insulation and packaging. Together, the plants have the capacity to make 100,000 metric tons per year of EPS and employ 115 people. BASF says the move addresses overcapacity and low profitability of EPS in Asia. In Latin America, the company is carving out EPS plants in Brazil and Argentina as stand-alone companies, evaluating strategic options for its EPS business in Chile, and planning to divest an EPS foam parts supplier. BASF’s South American EPS business has an annual capacity of 83,500 metric tons. The company says it will focus on its Neopor line of graphite-infused EPS, which is a better insulator than standard EPS. In 2011, BASF and Ineos formed Styrolution, a styrenic polymers joint venture, but BASF kept its EPS business.