BASF consolidates manufacturing of liquid coatings in North America
Improved productivity, competitiveness means greater focus on customer needs

SOUTHFIELD, Mich., December 2, 2004 -- BASF today announced that it is consolidating its coatings manufacturing operations in North America. The company will discontinue the production of automotive liquid coatings at its Morganton, N.C., site.

Production of liquid coatings will be transferred to BASF facilities in Decatur, Ala., Greenville, Ohio, Tultitlan, Mexico and Windsor, Ontario. The transfer will begin in January 2005, and the shutdown of the liquid coatings operation in Morganton will be complete on June 30, 2005. The powder coatings operation at Morganton will continue to operate with its current staff of approximately 10.

“In an effort to capitalize on significant productivity gains in our manufacturing sites, we have the opportunity to further streamline and strengthen our North American manufacturing footprint,” said Rainer Blair, Group Vice President of BASF Coatings in North America. “The consolidation of our manufacturing operations will allow BASF to competitively deliver the most innovative and robust solutions in the marketplace.”

Blair added that as production is transferred from Morganton to other facilities, the company will work closely with customers to make sure they continue to receive quality products without interruption, backed by BASF’s expertise in coatings research and market development.

Approximately 100 positions will be eliminated at the Morganton site as a result of the closure of the liquid coatings operation.

BASF – The Chemical Company. We don’t make a lot of the products you buy. We make a lot of the products you buy better.®
BASF Corporation, headquartered in New Jersey, is the North American affiliate of BASF AG, Ludwigshafen, Germany. We employ about 11,000 people in North America and had sales of approximately $9 billion in 2003. For more information about BASF’s North American operations, or to sign up to receive news releases by e-mail, visit www.basf.com/usa.

BASF is the world’s leading chemical company. Our goal is to grow profitably and further increase the value of our company. We help our customers to be more successful through intelligent system solutions and high-quality products. BASF’s portfolio ranges from chemicals, plastics, performance products, agricultural products and fine chemicals to crude oil and natural gas. Through new technologies we can tap into additional market opportunities. We conduct our business in accordance with the principles of sustainable development. In 2003, BASF had sales of approximately $42 billion. BASF shares are traded on the stock exchanges in Frankfurt (BAS), London (BFA), New York (BF), Paris (BA) and Zurich (AN). Further information on BASF is available on the Internet at www.basf.com.

For more information, contact:
Andy Ladak
BASF
Tel: (248) 948-2088
E-mail: ladaka@basf.com