Wedoany.com Report-May 29, BASF SE, based in Ludwigshafen, Germany, and DOMO Chemicals, headquartered in Leuna, Germany, have signed an agreement allowing BASF to acquire DOMO Chemicals’ 49% stake in their Alsachimie joint venture, where BASF currently holds a 51% share. The transaction, subject to consultations with Alsachimie’s relevant social bodies as required by law, is expected to lead to a binding purchase agreement. Both companies anticipate finalizing the deal by mid-2025, pending these discussions.

The acquisition would grant BASF full ownership of Alsachimie, located in Chalampé, France, a key European hub for polyamide (PA) 6.6 precursor production. This move strengthens BASF’s production capabilities and enhances its integration into the PA 6.6 value chain, supporting industries such as automotive and textiles. In 2022, BASF announced plans to construct a hexamethylene diamine (HMD) plant at the Chalampé site, further reinforcing its commitment to the region.

Dr. Stephan Kothrade, a member of BASF SE’s Board of Executive Directors, stated: “As a key supplier for polyamide 6.6 precursors, it is our priority to ensure the reliable supply in Europe. 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.”

Yves Bonte, CEO of DOMO Chemicals, said: “For DOMO Chemicals, the intended transaction aligns with our strategy to continue to focus on delivering tailored polyamide solutions in the core segments automotive, consumer goods, industrial, and electrical & electronics industries.” The deal allows DOMO Chemicals to concentrate on its specialized market segments while BASF assumes full control of Alsachimie.

Established in February 2020 as a joint venture, Alsachimie operates at the French-German border, producing critical precursors for polyamides, including KA-oil, adipic acid, and hexamethylenediamine adipate (AH salt). The acquisition supports BASF’s goal of optimizing its production network and ensuring a stable supply of raw materials for polyamide manufacturing. This strategic step is expected to enhance operational efficiency and support economic growth in the region by meeting the demands of key industries.