BASF concern (Germany) opened a new plant in Krasnodar on October 17. According to the press service of the company, over 20 varieties of polymer additives to concrete will be produced there. The company invests in a waste-free enterprise, the launch of which will significantly reduce the delivery time for customers from the Southern Federal District (SFD) and offer them a wide range of products adapted for use in the region.
German BASF and LetterOne owned by Russian businessman Mikhail Fridman have signed an agreement on the merger of their oil and gas assets, Wintershall and DEA, forming Wintershall DEA, a new united company, states the press-release.
Chemical concern BASF reports that it opened a logistic terminal in Bolshoi Tolbin of the Moscow Region for storage of construction materials produced in the neighboring company’s plant.
German BASF SE announced that it has signed an agreement with LetterOne Group about the intention to unite the oil and gas businesses of Wintershall AG and DEA.
According to BASF, the company will be one of the largest independent exploration and production companies in Europe. BASF expects that its registration on the exchange is possible in the medium term.
BASF and LetterOne signed a letter of intent today to merge their respective oil and gas businesses in a joint venture, which would operate under the name Wintershall DEA. The oil and gas business of BASF is bundled in the Wintershall Group consisting of Wintershall Holding GmbH and its subsidiaries, including the gas transportation business. The oil and gas business of LetterOne comprises DEA Deutsche Erdöl AG and its subsidiaries. By combining these two German-based entities, their parent companies strive to create a basis for further profitable growth, optimize the portfolio footprint of the combined business and realize synergies. Wintershall DEA would have significant growth potential and be one of the largest independent European exploration and production companies. In the medium term, BASF and LetterOne envisage to list Wintershall DEA through an initial public offering.
In the coming months, BASF and LetterOne will prepare and conduct a confirmatory due diligence and negotiate definitive transaction agreements. Closing could be expected in the second half of 2018, subject to customary regulatory approvals. Until the closing, Wintershall and DEA will continue to operate as independent companies. There is no assurance that BASF and LetterOne will enter into definitive transaction agreements or that the intended transaction will be consummated.
It is intended to form Wintershall DEA by LetterOne contributing all its shares in DEA Deutsche Erdöl AG into Wintershall against issuance of new shares to LetterOne. Based on the valuation of the exploration and production businesses, BASF shall initially hold 67% and LetterOne shall hold 33% in Wintershall DEA. In this shareholding ratio, Wintershall’s gas transportation business is not accounted for. As of closing, Wintershall DEA shall issue a mandatory convertible bond to BASF reflecting the value of Wintershall’s gas transportation business. No later than 36 months after closing, this bond shall be converted into new shares in Wintershall DEA, resulting in a higher shareholding ratio for BASF.
In 2016, the combined business had pro-forma sales of €4.3 billion, EBITDA of €2.2 billion and net income of €326 million. Overall, production volumes of Wintershall and DEA amounted to 215 MMboe in 2016, this equals a production of around 590,000 boed. Based on proven reserves (1P) of 2.1 Bboe at the end of 2016, the reserve to production ratio of the combined business would be around 10 years.
BASF would determine the CEO and LetterOne the deputy chief executive officer of Wintershall DEA. The company would be headquartered in Kassel and Hamburg, Germany. Following the closing of the transaction, BASF expects to account for its stake in the joint venture under the equity method in BASF’s consolidated financial statements.
BASF SE of Germany is discussing merger of its oil and gas business unit Wintershall AG with Dea Deutsche Erdoel AG currently controlled by LetterOne (L1) Group. Bloomberg reports it citing sources aware of the situation, according to Interfax. According to them, the negotiations are in the advanced stage and may complete within several weeks. The new company may be worth circa EUR 10 BN. IPO is possible in the future.
The German BASF Company Group plans to build in Siberia a plant for the production of dry construction mixtures and concrete additives. In the Novosibirsk Region – the priority area for production facility localization – the Company has already studies the sites of the Novosib Industrial Park and those of the Regional Industrial and Logistic Park (ILP). The investment in the project will be at least €5 million. The plant launching is expected in 2020. According to experts, the plant launching will be extremely favorably timed to the completion of the Baikal-Amur Mainline modernization plan in 2020.
BASF Group launched in Saint Petersburg a plant for the production of construction chemistry; the total investment amounted to €5 million, as reported by Sergey Vetlov, the General Director of the BASF Construction Systems (Master Builders Solutions brand).
The capacity of the panel oiling production line is 1,800 tons per year. The first year, it will be loaded with domestic orders; then, the Company will decide on export supply, Vetlov said. This fact has largely determined the choice of the region where the oiling production will be located: Saint Petersburg has excellent logistics opportunities in terms of sea cargo transport, he stated.
BASF Group, the world’s leading producer of construction chemicals, opened a second line at the plant in St. Petersburg. The enterprise will manufacture products which are in demand in the underground construction (mining industry and tunneling) — alkali-free concrete accelerators.
On June 8, 2016, the BASF concern (Germany)started the production of brick glues at the plant in the settlement of Bolshoye Tolbino of the Podolsk District.
The start of the brick glue production is yet another step to the implementation of a large scale program of BASF construction chemicals production localization in Russia. It should be noted that within the three previous years the Construction Chemicals division of BASF started two production complexes in the Moscow Region, a plant in Kazan, as well as started the first concrete additives production line in Saint Petersburg.
The concern plans to increase its local presence in Russia in 2016.
German chemical company BASF is considering the possibility of localizing its production facilities in the Novosibirsk Region. This was reported by the Region Investment Promotion Agency (IPA).
The first demonstration area of BASF was solemnly opened on July 07, 2015 in the Center and North-West area.
The BASF Tula DemoCenter is a joint project of BASF chemical concern and the National Land Company Group (the NLC Group) based on the facilities of Maxim Gorky LLC in the Chern District of the Tula Region. The DemoCenter has a surface area of 34 ha. This is where crops of barley, sunflowers, rapes, corns, peas, soybeans, and also a collection of potato species are presented.
Vladimir Gruzdev, Tula Region Governor, Sergi Vizoso, BASF CIS Crop Protection Department Director, Aleksandr Lebedev, Chairman of the Board of Directors of National Reserve Corporation LLC participated in the ceremony of opening the BASF DemoCenter.
Trainings, thematic seminars, field master classes, days of BASF open fields for specialists and managers of agricultural companies as well as for agronomy students are planned to be held at the DemoCenter.
The main purpose of the DemoCenter is to promote innovative products and ready technological solutions of BASF focused on different levels of production intensity and profitability of the main crops in local conditions of the area.
The RusVinyl polyvinyl chloride (PVC) production facility in Kstovo (Nizhny Novgorod Region), ranking among Russia’s largest petrochemical investment projects, was inaugurated today.
Vladimir Putin, the Russian President, attended the grand opening ceremony, along with Alex van Meeuwen, Belgian Ambassador to Russia, Valery Shantsev, Governor of Nizhny Novgorod Region, Leonid Mikhelson, Chairman of SIBUR’s Board of Directors and NOVATEK's Management Board, Alexander Dyukov, Deputy Chairman of SIBUR’sBoard of Directors and CEO of Gazprom Neft, Jacques van Rijckevorsel, Chairman of the Board of SolVin, and Dmitry Konov, CEO of SIBUR.
RusVinyl is a joint venture between SIBUR, Russia's leading gas processing and petrochemical company, and SolVin, and was created to construct a new PVC production site that could meet a significant part of domestic demand. SolVin is jointly owned by Solvay (75%) and BASF (25%).
RusVinyl is one of the largest PVC producers in Russia with an annual production capacity of 330 kt of PVC and 225 kt of caustic soda. It will benefit from the nearby supply of ethylene, a key raw material for PVC, from SIBUR-Kstovo's steam cracker, expanded to 360 kt especially for the RusVinyl site. Salt, the other feedstock for PVC production, will be provided from Belarus and from the Astrakhan Region of Russia.
In 2013, PVC consumption in Russia exceeded 1 mt, of which only 0.6 mt was produced locally**. RusVinyl will provide its top-quality products to the undersupplied Russian market and aims to further develop downstream operations and consumption of petrochemicals.
“SolVin is proud to have successfully completed this project, which is among its biggest industrial achievements ever. SolVin’s experts from across the globe pulled together with SIBUR’s team made this the most modern and most environmental friendly, fully-integrated PVC production plant in the world,” said Jacques van Rijckevorsel, Chairman of the Board of SolVin.
The investments to the project exceeded RUB 60 bn (€ 1.4 bn).
Germany-based chemical firm BASF has opened a new production plant for concrete admixtures in Kazan.
Together with a plant launched in Podolsk near Moscow in 2012, BASF now supplies the Russian construction sector with a range of concrete. At its Kazan site, BASF manufactures 20 varieties of concrete admixtures, including latest generation products based on polycarboxylate ether (PCE) technology.
Production focuses on admixtures for accelerated concrete curing and prolonged workability even at low temperatures. Specifically geared toward supporting the Russian construction sector, these admixtures can for example help to extend construction phases even during longer cold periods.
A dedicated laboratory ensures quality and analyzes raw materials and finished products locally.
Company's website: www.basf.com
T: +49 621600
Public company (EURONEXT: BAS)
Contact: Dr Kurt Bock, Chairman of the Board
BASF comprises six business segments: Chemicals, Plastics, Performance Products, Functional Solutions, Agricultural Solutions and Oil & Gas.