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BASF To Reorganize Leather And Textile Chemicals Business

BASF SE, Germany, has announced plans to reorganize its Leather and Textile Chemicals business unit (BU) to concentrate on the Asia-Pacific region and on high-value-adding applications.

Leather Chemicals will focus on core technologies for the automotive industry and premium leather segment, and Textile Chemicals will focus on value-adding steps such as printing and finishing and solutions for manufacturing premium textile items.

BASF will establish a global innovation center for its Leather and Textile Chemicals BU in China, which is its main growth market. The center will be located within the BASF Innovation Campus in Shanghai and will be part of the R&D Innovation Verbund.

In addition, the company will eliminate 65 positions globally — including 29 in Ludwigshafen, Germany — to adjust to the BU's new setup. However, BASF reports it will create approximately 23 positions to support the anticipated growth in China, India and Turkey.

"BASF strives to remain the preferred partner of the leather and textile industries for reliable and innovative chemical solutions," said François Desné, senior vice president, Leather and Textile Chemicals global business unit, BASF. "We are reshaping our business setup to strengthen our long-term ability to compete in a rapidly changing market environment."

The reorganization is expected to be completed by the end of 2014.

March 26, 2013