- BASF plans to acquire DOMO's 49% stake in Alsachimie, aiming to finalize by mid-2025.
- The transaction is subject to consultations with Alsachimie's social bodies.
- Alsachimie produces KA-oil, adipic acid, and AH salt for polyamides.
- Alsachimie was established in February 2020 at the French-German border.
Transaction Overview
BASF and DOMO Chemicals have reached an agreement for BASF to acquire DOMO's 49% share in the Alsachimie joint venture. BASF currently holds a 51% stake in Alsachimie. The transaction is contingent upon consultations with Alsachimie's relevant social bodies. Both companies anticipate completing the transaction by mid-2025.
Strategic Importance for BASF
For BASF, gaining full ownership of Alsachimie is a strategic move to enhance its operations at the Chalampé site in France, a key location for polyamide (PA) 6.6 precursor production. Full control would allow BASF to optimize its production setup and improve backward integration into essential raw materials within the PA 6.6 value chain.
DOMO Chemicals' Focus
DOMO Chemicals views the transaction as aligning with its strategy to concentrate on delivering customized polyamide solutions across core segments, including automotive, consumer goods, industrial, and electrical & electronics industries.
Alsachimie's Role and Products
Founded in February 2020, Alsachimie is located at the French-German border. The joint venture produces critical precursors for polyamides, such as KA-oil, adipic acid, and hexamethylenediamine adipate (AH salt). These substances are essential for the production of polyamide 6.6, a material widely used in various industries.
