BASF Dispersions and Paper Chemicals Group Reorganizes to Improve Its Viability in Marketplace.

Business Editors

CHARLOTTE, N.C.--(BUSINESS WIRE)--March 1, 2001

At a meeting with employees held today, BASF announced a reorganization of its North American Dispersions and Paper Chemicals business group, effective immediately. These changes include the closure of its Polymin manufacturing plant at the company's Freeport, Texas, site by mid-2001.

The Polymin plant is one of many manufacturing operations at BASF's Freeport Verbund site. It produces ethyleneimine (EI) and polymers of ethyleneimine (PEI) used to enhance the papermaking process. The plant, which currently employs 28 people, is scheduled to close on June 30, 2001 and will be demolished afterwards. In conjunction with this action, there will be a reduction-in-force of approximately 20 people in various capacities from the Dispersions and Paper Chemicals business group.

To satisfy customers' supply needs through mid-2002, BASF will continue to run the Polymin plant to build up inventory up to its scheduled closure. BASF will then supply these products to the North American market from its highly efficient site in Ludwigshafen, Germany.

The group's Paper Chemicals business unit has been restructured to better reflect BASF's new emphasis on supporting its key regional and global customers. Phil Williams will continue to lead the unit as Business Director. Reporting to him are Chris Broomhead, who will manage the unit's sales force along with global and key accounts; Mike Creagan, responsible for marketing the wet-end chemical product lines; and Larry Justen, who will manage the dry-end chemical product lines.

"BASF stays committed to the paper industry and will continue to be a leading supplier to our North American customers," said Klaus E. Loeffler, Group Vice President for the Dispersions and Paper Chemicals business. "Shifting our structure and focus are necessary to respond to the continuing consolidation of the U.S. paper industry. We will concentrate on supporting our key global and regional customers in North America by offering them more technically advanced products and services."

The Dispersions and Paper Chemicals group, part of BASF Corporation, is a leading worldwide developer, manufacturer and marketer of high-performance products for the industrial and architectural coatings, papermaking, adhesives raw materials, asphalt and the textile nonwovens and carpet backing markets in North America. With headquarters in Charlotte, N.C., this BASF business unit operates a state-of-the-art Technical Center in Charlotte, as well as production facilities in Monaca, Pa.; Chattanooga, Tenn.; Freeport, Texas; Appleton, Wis.; and Altamira, Mexico.

BASF Corporation and its subsidiaries ranks as the third largest producer of chemicals and related products in the United States, Canada and Mexico, with sales of $7.2 billion in 1999. Based in Mount Olive, New Jersey, BASF Corporation is the North American affiliate of BASF Aktiengesellschaft (Ludwigshafen, Germany), which is listed on the New York Stock Exchange under the trading symbol "BF."

"We don't make a lot of the products you buy. We make a lot of the products you buy better.(R)" summarizes BASF's diverse product mix including chemicals, polymers, automotive and industrial coatings, colorants, nylon fibers and agricultural products. BASF in North America employs more than 16,000 people at more than 50 locations and has an Internet site at http://www.basf.com.

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