Plastics for nylon fibre

Honeywell has signed two definitive agreements with BASF as part of a planned restructuring of its Specialty Materials business unit.

Under terms of the agreements, Honeywell will sell its engineering plastics business to BASF and will acquire BASF's nylon fibre business.

Honeywell will receive $170 million in cash and all of BASF's nylon fibre business at closing. It will pay $80 million to BASF within one year of the transaction's close.

Honeywell will, however, retain its nylon films business and all of its specialty chemicals operations.

Through these transactions, BASF will exit the fibres market and concentrate on its plastics business, which includes styrenics, polyurethanes and nylon intermediates.

In 2001, Honeywell's engineering plastics business had sales of about $350 million, while BASF's nylon fibres group sales were approximately $350 million for the same year. Sales for Honeywell's retained nylon business in 2001 totalled nearly $700 million.

The transactions are expected to close in the first half of 2003, subject to regulatory approvals.