IPP to market BASF’s ammonia, methanol and melamine plants in Germany

BASF has signed an agreement with International Process Plants (IPP), a leading global acquisition and sales company of process plants and equipment, for the sale of ammonia, methanol and melamine plants at BASF's integrated site in Ludwigshafen, Germany.

In order to maintain a competitive advantage in the growing European market, BASF carried out structural changes and subsequently commissioned its Ludwigshafen plant. The move was originally announced in February 2023. Despite these changes, BASF will continue to produce ammonia and methanol at other units at the Ludwigshafen site. By mutual agreement, financial details of the agreement between the two companies remain confidential.

The transaction includes integrated production facilities for ammonia (380,000 tons per year), methanol (165,000 tons per year) and melamine (51,000 tons per year). IPP is relocating and selling these top-tier production units to qualified buyers who have projects involving such assets and are seeking opportunities to reduce capital expenditures and accelerate project implementation timelines.

IPP President Ronald Gale said: "We are excited to add these world-class ammonia, methanol and melamine plants to our outstanding portfolio of relocation plants. These facilities represent a significant opportunity for companies seeking to expand capacity using existing assets operating at high energy and raw material efficiencies. IPP is committed to finding new homes for these assets where natural gas supplies are abundant and economical, or as part of green ammonia or methanol projects, allowing them to continue to operate efficiently and effectively."

"BASF is working with IPP to divest idle ammonia, methanol and melamine plants to ensure that these well-maintained assets can continue to be used for chemicals production. The units remained in operation until 2023, when they were shut down due to structural changes in the production units at the Ludwigshafen site. The sale represents a more sustainable and economical approach to the deployment of these production units and provides a net benefit to the global process industry." said Ruediger von Watzdorf, Senior Vice President Technology, BASF Monomers Division.