BASF sells Softex business to GOVI CAST, transferring customers and technology while ensuring supply continuity during production transition in Southeast Asia.
BASF has announced the signing of an Asset Purchase Agreement to divest its Softex business to GOVI CAST Sdn. Bhd., a prominent supplier of specialty chemicals. The agreement marks a strategic move by BASF to streamline its portfolio and focus more strongly on core growth segments within its Care Chemicals division.
Under the terms of the transaction, the deal includes the transfer of Softex’s customer list, along with the formulation expertise and production know-how associated with the product line. Additionally, a tolling and supply agreement has been established to maintain product availability during the transition phase. However, the agreement specifically excludes any physical manufacturing assets from the sale.
The Softex product range consists primarily of Calcium Stearate and Ammonium Stearate dispersions. These materials are widely used as anti-tack and mould release agents in glove manufacturing processes. Beyond the gloves sector, Softex products are also applied in other industries, including cement mixing and textile coatings. For several years, production of Softex grades has been carried out at BASF’s Cimanggis manufacturing site located in Indonesia.
Through this acquisition, GOVI CAST will assume responsibility for managing and supplying the existing Softex customer base previously served by BASF. The majority of these customers are located in Southeast Asia, particularly in markets such as Malaysia and Indonesia, as well as other neighboring regional markets. By acquiring the customer relationships, GOVI CAST aims to ensure continuity of service while further strengthening its presence in the region’s specialty chemicals market.
To guarantee a smooth transition, BASF will continue producing and supplying Softex products from its Cimanggis facility under a tolling arrangement for a temporary period. This arrangement will remain in place until GOVI CAST completes the process of adapting the formulation technology and production know-how at its own manufacturing facility in Port Klang, Malaysia. Once the transfer of knowledge and operational capabilities is finalized, production will gradually shift to GOVI CAST’s site, enabling the company to supply the market with its own branded grades.
According to Parthiv Amin, the divestment is aligned with BASF’s long-term strategic priorities. He explained that the move allows the company to sharpen its focus on key growth areas while ensuring that existing Softex customers experience minimal disruption. Amin also noted that GOVI CAST’s expertise and established presence in the specialty chemicals sector make it a suitable partner to continue developing the business.
Meanwhile, Francis Himpe expressed enthusiasm about the acquisition, emphasizing that incorporating Softex into the company’s portfolio will reinforce its position within the glove manufacturing industry. He stated that the integration will enable GOVI CAST to deliver enhanced value to customers throughout the Asia-Pacific region, while also introducing new innovations designed to address the evolving requirements of the industry.
The global glove manufacturing sector has experienced strong growth in recent years, largely driven by increasing hygiene awareness and expanding healthcare demand. Southeast Asia plays a dominant role in this market, with Malaysia alone accounting for approximately 65 percent of worldwide glove production. Over the decades, Softex products have supported the development of this industry by providing reliable anti-tack and release solutions used during the manufacturing process.
Although the companies have confirmed the agreement, both BASF and GOVI CAST have chosen not to disclose the financial details of the transaction. The completion of the deal remains subject to customary closing conditions and regulatory approvals.
