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BASF sells animal feed premix sites

DENMARK - BASF is selling its animal nutrition premix business in eight countries to Nutreco, an animal feed group headquartered in the Netherlands. Premixes are mixtures of vitamins and feed additives for animal nutrition. Nutreco is one of the worlds leading manufacturers of animal feed premixes and specialties.

The sales contract was signed on February 16, 2007, and is subject to approval by the responsible authorities. Both parties have agreed not to disclose the financial details. BASF expects the transaction to close in the second quarter of 2007.

The concerned premix sites are in Europe (UK, Poland, Italy), Asia (Indonesia, China), North America (USA, Mexico) and Central America (Guatemala). The sale affects 435 employees, who will transfer to Nutreco, and is an important step in the global restructuring of the Fine Chemicals division.

“This is an important step for Nutreco in a time where we have just mobilized all our resources for a full focus on the growth of our core businesses animal nutrition and fish feed for aquaculture,” said Jürgen Steinemann, Nutreco’s Chief Operating Officer. “Reinforcing our strongholds in these growth markets with BASF’s operations will help us to gain momentum for further expansion in the Americas and Asia. At the same time our leading position in Europe in premix and feed specialties is now strengthened with the contribution of the mixing business of BASF in important animal feed markets.”

“The divestment of the animal nutrition premix business is part of our strategy to operate efficiently and flexibly in the food and feed markets and, thus, to position BASF Fine Chemicals as a sustainable feed ingredient supplier to the feed industry,” said Dr. Wolfgang Büchele, head of the BASF Fine Chemicals division. The consolidation of human and animal nutrition into one nutrition business in November 2006 was a first step in this direction. BASF is focusing on producing and marketing important vitamins, carotenoids, enzymes and organic acids.

This sale covers the majority of BASF’s animal nutrition premix business. The remaining part of this business at other sites is significantly smaller and locally focused. “We are working to find alternatives for these sites, too. Further divestments to potential local buyers are among the options being considered,” Büchele added.

In addition to premixes, BASF produces vitamins, carotenoids, enzymes and organic acids for animal feed.

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