By Ed Frankl
BASF SE said Tuesday that it will carve out its mobile emissions catalysts business as it ramps up efforts to deal with the auto industry's shift to e-vehicle manufacturing.
The carve-out will establish a separate entity named BASF Automotive Catalysts and Recycling, the German chemical company said. The process will start in January and is expected to take up to 18 months.
"BASF continuously evaluates its portfolio and with the carve-out we want to give this business more entrepreneurial freedom and agility, so it can focus even better on the needs of its markets and customers," BASF board member Markus Kamieth said.
The new entity will prepare BASF, one of the world's largest chemicals suppliers to the auto industry, for the sector switch to electromobility and allow for future strategic options, the Ludwigshafen-based company said.
It will comprise around 20 production sites and more than 4,000 employees, with its base in Iselin, N.J.
BASF will also invest up to 4.5 billion euros ($5.08 billion) between 2022 and 2030 in battery materials and base-metals recycling as it targets growth in the market, it said.
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(END) Dow Jones Newswires
December 07, 2021 09:41 ET (14:41 GMT)Copyright (c) 2021 Dow Jones & Company, Inc.