Aiming to strengthen its competitive position and improve sustainability in the industry, Stahl said it intends to take over all activities of BASF Leather Chemicals business.

“These are exciting and challenging times for the chemical industry in terms of sustainability and innovation. We believe we can only make a real difference if we can work on a large scale within the industry”, said Huub van Beijeren, CEO, Stahl. “The signing of this agreement enables us to accelerate the process of creating a more transparent sustainable supply chain as we share the same vision on reducing the environmental footprint linked to our activities”, he added highlighting the numerous synergy advantages for Stahl such as a stronger product portfolio with more innovative solutions

BASF is to receive 16% stake in the Stahl Group and said it will supply significant volumes of leather chemicals to Stahl under mid to long-term supply agreements. The transaction comprises BASF’s global leather chemicals business, as well as the leather chemicals production site in L’Hospitalet, Spain. Around 210 positions globally are in the scope of the transaction, of which about 110 are in Asia.

“This partnership is the right step for BASF’s successful leather chemicals business,” says Michael Heinz, Member of the Board of Executive Directors, BASF SE. “With complementary strengths, BASF and Stahl are creating a leading company in leather chemicals with a strong focus on innovation.”

The agreement was signed on March 22, 2017 and the transaction is subject to approval by the relevant authorities. The closing is expected to take place in the fourth quarter of 2017.