BASF expands capacities for Neopor

BASF is expanding its production capacities for the innovative insulation product Neopor in Ludwigshafen and will start producing the material for the first time in South Korea. Neopor needs less material to achieve the same insulation quality as Styropor, thus making a key contribution to energy efficiency and climate protection.

The Neopor capacities in Ludwigshafen will gradually increase from 60,000 to 190,000 metric tons per year. A part of these capacities will come from switching existing Styropor production to Neopor. The first expansion up to 100,000 metric tons per year will already be completed soon. A new plant will be built for the additional 90,000 metric tons, which will most likely be operational at the end of 2008. Ulsan, South Korea, will soon become the second global production site for Neopor and will serve the regional market. In the past, the material for this market was imported from Germany.

- We have established Neopor as an innovative product in the market and created added value for our customers as well as for private homebuilders due to the material`s high energy efficiency - said Hans W. Reiners, President of BASF Styrenics division. - Our goal is to provide the most modern forms of insulation materials in the future through further research and development.

Neopor made by BASF represents the basis for a new generation of thermal insulation materials. The silver-grey foamable granules are used to manufacture insulation panels for walls and roofs. Neopor is chemically a further development of the well-known Styropor (EPS: expandable polystyrene), and provides a significantly improved insulation quality. The granules contain special, small graphite bits, which reflect the heat waves like a mirror, thus reducing heat loss in the house.

- The building boom has made it possible for BASF, as pacesetter in the market, to further increase its sales of efficient insulation products. The expansion and the new plant mean we can offer our customers a highly reliable supply and better serve ongoing strong demand - said Clemens Willée, head of BASF`s Styrenics business in Europe. - And the innovation potential of Neopor has not yet been fully realized.

Nearly a third of primary energy in Germany is used for the heating or cooling of private households. New, energy efficient buildings or the renovation of badly insulated old buildings could reduce energy use without leading to a loss in quality of life and reduce the emission of carbon dioxide. Neopor can play an important role here.

For example: If an old residential building, which uses 25 liters of heating oil per square meter per year, is insulated so that only seven liters are necessary, the inhabitants of a 80 square meter flat in this building would save per year about 1,440 liters of heating oil and would reduce carbon dioxide emissions by 4,600 kg. The energy needed to manufacture the Neopor insulation foam - nearly 1,000 liters of heating oil based on a 80 square meter living area - is already saved after the first heating season.

BASF has built several low energy houses worldwide using Neopor. For the first time in Germany, the company modernized an old building into a 3-liter house in Ludwigshafen as part of a pilot project.

BASF is the world`s leading chemical company: The Chemical Company. Its portfolio ranges from chemicals, plastics, performance products, agricultural products and fine chemicals to crude oil and natural gas. As a reliable partner to virtually all industries, BASF`s high-value products and intelligent system solutions help its customers to be more successful. BASF has over 95,000 employees and posted sales of ?52.6 billion/$66.1 billion in 2006. BASF shares are traded on the stock exchanges in Frankfurt (BAS), London (BFA), New York (BF) and Zurich (AN).