BASF Sells €5 Billion Business to BACHL

On January 9, 2025, BASF announced a significant decision to sell its Styrodur® business along with the brand to the leading German insulation materials manufacturer Karl Bachl Kunststoffverarbeitung GmbH & Co. KG (BACHL). The parties have officially signed the relevant agreements, and the Styrodur® involved in this transaction is a widely used extruded polystyrene (XPS) insulation material.

BACHL, as a long-term distribution partner of BASF, has extensive experience in XPS production, and this acquisition further consolidates its position in the insulation materials industry. Approximately 50 employees from BASF’s European division involved in the Styrodur® business will continue to work at BASF. The sale is expected to be completed by mid-2025, subject to approval from relevant competition authorities. The parties have agreed to keep the financial details of the transaction confidential.

Dr. Klaus Ries, Head of Styrene Europe Business Management at BASF, stated that through this sale, BASF will focus more on its strategic expandable polystyrene (EPS) and continue to develop its well-known Neopor® and Styropor® brands. Since 2024, BASF has divested several non-core businesses and closed certain production projects to optimize strategic investments.

In October 2024, BASF announced plans to increase the Neopor® capacity at its Ludwigshafen plant to 250,000 tons/year, expected to be operational by early 2027, reflecting BASF’s continued ambition for growth in the European EPS market. EPS, or expandable polystyrene foam, is a lightweight, porous plastic product known for its insulation, cushioning, soundproofing properties, and good processability and chemical stability. Its main applications include electronics, daily necessities and toys, packaging, building insulation materials, cold chain logistics, model making, and agriculture.

According to market research, the global EPS market size reached $15.6 billion in 2024, and is expected to reach $19.4 billion by 2030, with a CAGR of 3.9% from 2024 to 2030. China has become one of the largest producers and consumers of EPS globally, with an EPS capacity of 7.82 million tons by 2024, and a compound annual growth rate of 5.7% over the past five years.

BASF's Neopor® is a graphite-containing expandable polystyrene (EPS) granule primarily used for producing energy-efficient insulation materials for building envelopes. BASF filed a patent for white Styropor® expandable polystyrene in 1951 and developed Neopor® in 1997, launching it to the market in 1998. Neopor® offers superior performance in construction, with a thermal conductivity lower than traditional white EPS granules, optimizing its flame retardant properties and making it an excellent insulation material.

Additionally, BASF has launched biomass-balanced (BMB) Neopor® and Neopor® Mcycled containing recycled materials, significantly reducing carbon emissions. Neopor® BMB can lower carbon emissions by 90%, while Neopor® Mcycled contains 10% mechanically recycled material. Through these innovative initiatives, BASF not only enhances product performance but also actively responds to the global trend of energy conservation and carbon reduction.