BASF acquires full ownership of Alsachimie, enhancing PA 6.6 integration and production capacity while DOMO refocuses on specialty solutions.
BASF has successfully completed the acquisition of DOMO Chemicals鈥� 49% stake in the Alsachimie joint venture, thereby becoming the sole owner of the production facility located in Chalamp茅, France. This site is responsible for manufacturing essential precursors used in the production of polyamide (PA) 6.6, such as KA-oil, adipic acid, and hexamethylenediamine adipate (AH salt). The financial terms of the agreement remain undisclosed as per mutual decision by both companies.
By assuming full control of Alsachimie, BASF consolidates its operations at Chalamp茅, which serves as its European hub for PA 6.6 production. This move allows BASF to enhance its backward integration into critical raw materials, ensuring a more secure and efficient supply chain for its PA 6.6 operations. The acquisition represents a strategic advancement for BASF, aligning with its long-term vision to fortify its position in the engineering plastics market and increase control over the value chain.
The consolidation also enables BASF to optimize production processes, streamline supply routes, and improve overall operational efficiency at the Chalamp茅 site. BASF aims to leverage this strengthened position to meet growing demand across industries such as automotive, electronics, and consumer goods, where PA 6.6 plays a critical role due to its durability and high-performance characteristics.
For DOMO Chemicals, the divestment aligns with its broader strategy to concentrate on delivering customized polyamide solutions tailored to the specific needs of its core markets, including automotive, industrial, electrical and electronics, and consumer goods sectors. Rather than investing further in upstream raw material production, DOMO is focusing its resources on innovation and customer-oriented application development in specialty polyamide materials.
The transaction complements BASF鈥檚 recent investments to bolster its polyamide capabilities. Notably, the company recently inaugurated a state-of-the-art hexamethylenediamine (HMD) production facility at Chalamp茅. Additionally, BASF is expanding its PA 6.6 polymerization capacity at its nearby site in Freiburg, Germany. These developments underscore BASF鈥檚 continued commitment to reinforcing its supply reliability and meeting the increasing market demand for high-quality PA 6.6 products.
In summary, BASF鈥檚 full acquisition of Alsachimie marks a key milestone in its strategic expansion of polyamide 6.6 production in Europe. With full control over critical precursor production and ongoing capacity investments, the company is well-positioned to support its customers with reliable supply, enhanced integration, and high-performance materials.
DOMO Chemicals delivers advanced polyamide-based engineered material solutions tailored for the automotive, consumer goods, industrial, and electrical & electronics sectors. Additionally, the company offers essential products and services to the agriculture, chemical, pharmaceutical, fiber, and textile industries. Its extensive product range encompasses chemical intermediates, base polymers, engineering plastics, and high-performance fibers.
