August 25, 2006 – BASF says it is investing a “double-digit million euro” sum in a new plant for producing process chemicals used in the semiconductor industry. The new Electronic Material Center in Ludwigshafen, scheduled to open by the end of 2007, will include new purification facilities as well as cleanroom filling stations.

“The Verbund structures in Ludwigshafen give us access to a variety of chemicals and allows us to offer our customers a wide range of standard products as well as tailor-made solutions,” stated Ulrich Kalck, project manager in BASF’s electronic materials global business unit, referring to BASF’s “Verbund” strategy that integrates production plants, energy and waste flows, logistics, and site infrastructure.

BASF has committed to invest about 6 billion euros (about US $7.67 billion) through 2009 in capital expenditures and maintenance for its Ludwigshafen operations, the company’s largest production site, as well as an additional 800 million euros ($982 million) for R&D. A new cleanroom laboratory and application center is scheduled to open later this year.

When new facility comes online next year, a contract manufacturing arrangement with facilities in Darmstadt will cease, according to the company. In Jan. 2005, Merck KGaA sold its electronic chemicals to BASF for 270 million euros ($352 million); Merck KGaA employees in Darmstadt already worked under a toll manufacturing agreement for Merck Electronic Chemicals, and were to continue to manufacture for BASF through at least 2007.