BASF coatings: acquires Chemetall and sells industrial coatings to AkzoNobel

German chemicals firm BASF’s coatings division, which manufactures automotive OEM and refinish coatings as well as decorative paints, has completed its acquisition of Albemarle’s global surface treatment business, Chemetall. Through this acquisition, BASF says its coatings division expands its portfolio to become a more complete solutions provider, with Chemetall’s market-leading expertise in surface treatment. The combined businesses will benefit from each other’s global infrastructure, scale and market access, driving new growth opportunities by offering an unmatched solutions competence to customers, says the firm.

Chemetall develops and manufactures customised technology and system solutions for surface treatment. Its products protect metals from corrosion, facilitate forming and machining, allow parts to be optimally prepared for the painting process and ensure proper coating adhesion. These chemicals are used in a wide range of industries and end-markets, such as automotive, aerospace, aluminium finishing, and metal forming. Chemetall’s sales for the full calendar year of 2015 were US$845 million.

Meanwhile, in related news, BASF has completed the sale of its global industrial coatings businesses to AkzoNobel. The transaction includes technologies, patents and trademarks, as well as the transfer of dedicated production sites in UK and South Africa.

As a result of this transaction, AkzoNobel will now operate the global coil, furniture foil and panel coatings, wind coatings and general industry businesses acquired from BASF, as well as the commercial transport business in EMEA. These businesses generated sales of approximately EUR300 million in 2015.

The remaining portfolio of the coatings division consisting of the automotive OEM and automotive refinish coatings businesses, as well as the decorative paints business with the brand Suvinil in Brazil, had sales of approximately EUR2.9 billion in 2015.