Münster/Verbania, March 2, 2009 - Effective April 1, BASF Coatings will sell its powder business for home appliances, heating and pipe coatings to Arsonsisi S.p.A., the powder-coatings branch of the Junghanns Group. The transaction encompasses technology, customer lists and the Verbania powder-coatings plant that currently employs 63. Other financial details of the operation have not been disclosed.

Customers who currently purchase both liquid and powder technologies will be henceforth jointly supplied by BASF and Arsonsisi with both companies collaborating to support customers during the transition phase. BASF will continue and further strengthen its business with liquid coatings for industrial applications.

The agreement with Arsonsisi does not include BASF’s powder coatings for light vehicles and commercial transportation. Customers of this segment will continue to be served by BASF with products of its own technology produced by Arsonsisi under a tolling agreemenet. RELIUS Coatings’ merchandising of powder coatings is also not affected by the agreement.

"The agreement with Arsonsisi represents an important milestone in the implementation of our strategy for the Industrial Coatings", says Juan Manini, head of BASF’s Postcoatings business. "The close technological and commercial partnership of the two companies in the home appliances and heating segments will offer customers the best possible package of technologies and services available in the market. BASF will focus on continuous improvement of its advanced liquid coatings technologies while Arsonsisi will contribute with their extensive powder coatings product portfolio" said Manini.

"Acquiring BASF’s powder business is a major step forward on our path to growth and accelerates our expansion into European markets" echoes Carlo Junghanns, CEO of Arsonsisi. "Adding BASF’s technology and experience to our know-how will open up access to sectors of the market we are not currently present in." Furthermore, he adds "the cumulative size of our existing business and that acquired from BASF will afford us greater economies of scale and allow us to further optimize our industrial operations."