Page 44 - Plastics News March 2019

BUSINESS NEWS

FXI Innocor merge to provide BASF posts slight increase in
become innovative foam Solutions 2018 keen to invest in India

XI and Innocor, two of the leading producers of ASF has reported a slight increase in 2018 sales
Fpolyurethane foam products, has announced the signing Band a decline in earnings due mainly to lower
of a definitive merger agreement that will establish one contributions from Chemicals. BASF generated sales
of the most comprehensive and innovative companies in of €62.7 billion last year. This represents an increase
the industry. The combined company will offer a complete of 2% compared with the previous year. Income from
array of solutions and serve operations (EBIT) before special items declined to €6.4
customers across a broad billion, compared with €7.6 billion in the previous
range of end markets— year. This was mainly attributable to the Chemicals
including bedding, furniture, segment, which accounted for around two-thirds of
transportation, medical, the total decline in earnings. Lower earnings in the
filtration, acoustics, and Functional Materials & Solutions, Agricultural Solutions
industrial. Financial terms and Performance Products segments also contributed
of the transaction were not to the decline in EBIT before special items. Special
disclosed. FXI is a leading items amounted to minus €320 million, primarily due
provider of innovative to acquisitions. BASF Group’s sales rose by 2% in the
foam solutions driven by
consumer insights and fourth quarter of 2018 to €15.6 billion.
state-of-the-art research and development. FXI's products Supported by the segments Performance Products,
are used in a variety of end markets including bedding, Functional Materials & Solutions and Agricultural
furniture, transportation, medical, filtration, acoustics, Solutions, prices could be raised by 2%. Volumes
and industrial. The company has 16 manufacturing and declined by 3% The Chairman of the Board of Executive
distribution facilities with approximately 2,200 employees. Directors named a number of investment projects with
Innocor is a leader in consumer-driven polyurethane foam which BASF wants to further strengthen its position in
solutions for finished products in retail, ecommerce and
direct-to-consumer segments as well as OEM innovative
foam technologies for the sleep, furniture and RV
segments. The company has 21 manufacturing and
distribution facilities with approximately 1,800 employees
."This partnership brings together two industry pioneers
with complementary capabilities," said Harold J. Earley,
President and Chief Executive Officer of FXI, who will lead
the combined company. "We will be able to offer customers
an unparalleled service experience through enhanced
manufacturing and R&D capabilities—creating one of the
broadest ranges of innovative, high-quality polyurethane
foam products and solutions—and reduced delivery times Asia and accelerate organic growth. India is another
by leveraging our expanded footprint." "Innocor and FXI market where BASF wants to invest. The company
are already leaders in product development, customer recently signed a memorandum of understanding with
satisfaction, efficient operating platforms, and in the Adani to investigate a major joint investment in the
growth opportunities we offer for employees," said Bill acrylics value chain. The designated site would be
Redmond, President and Chief Executive Officer of Innocor, located at Mundra port in the Indian state of Gujarat.
who will have a seat on the combined company's Board of This would be BASF’s largest investment in India to
Directors. "Together, we will continue to invest in bringing date and its first CO2-neutral production facility.
innovative new technologies to customers.

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