Chemical giant BASF has announced its intention to acquire DOMO Chemicals' 49% stake in the Alsachimie joint venture, aiming for 100% ownership. This move, which builds on BASF's existing 51% share, is poised to significantly bolster the company's European production capabilities for polyamide (PA) 6.6 precursors value chain.

The agreement between BASF and DOMO Chemicals, signed on May 28, is currently subject to consultations with Alsachimie's relevant social bodies. Following these consultations, both parties anticipate entering into a binding purchase agreement, with the transaction expected to close by mid-2025.

For BASF, gaining full control of Alsachimie represents a pivotal step in complementing its robust operations at its Chalampé, France, site, which serves as its primary European hub for PA 6.6 precursor production. Sole ownership will enable BASF to further optimize its production setup and maximize backward integration into crucial raw materials within the PA 6.6 value chain.

Dr. Stephan Kothrade, member of the Board of Executive Directors of BASF SE, emphasized the importance of this acquisition for ensuring reliable supply in the European market. "As a key supplier for polyamide 6.6 precursors, it is our priority to ensure the reliable supply in Europe," said Dr. Kothrade. "By taking over the shares of our partner DOMO Chemicals, we are further strengthening our leading position and long-term commitment to the polyamide 6.6 value chain and paving the way for future growth with our customers in industries such as automotive and textiles."

Alsachimie, established in February 2020 as a joint venture between BASF and DOMO Chemicals, is located at the French-German border. The company plays a critical role in the production of essential polyamide precursors, including KA-oil, adipic acid, and hexamethylenediamine adipate (AH salt). These materials are fundamental to the manufacturing of PA 6.6, a high-performance engineering plastic widely used across various industries, including automotive, textiles, consumer goods, and electrical & electronics.

This move underscores BASF's dedication to solidifying its position in the polyamide market and enhancing its supply chain resilience, particularly in Europe. By integrating Alsachimie fully into its operations, BASF aims to secure its access to vital raw materials, thereby supporting the continued growth and innovation of its customers in key industrial sectors. The full acquisition of Alsachimie is expected to provide BASF with greater operational flexibility and efficiency, further strengthening its competitive edge in the global chemical industry.