BASF carotenoid production site gets €6m boost

15-Apr-2010 - Last updated on 16-Apr-2010 at 10:45 GMT

Improved logistics and optimised process control technology resulting from a multi million euro investment in its Danish microencapsulation facility will allow greater flexibility in terms of carotenoid and vitamin powder delivery to manufacturers, claims BASF.

Situated near Copenhagen, BASF’s Nutrition Ingredients business unit in Ballerup is affiliated to the Care Chemicals division and supplies customers from the food, beverage, pharmacological and infant nutrition industries with the carotenoids beta-carotene, lycopene and lutein, vitamins A, D3, E, K1 and B12 and omega-3 fatty acids.

The German chemical giant announced an investment of over €6m in the optimization and upgrade of the Ballerup site and Preben Sørensen, site manager at the Danish facility, said the outlay will allow the plant to respond even more flexibly and reliably to customer demand.

The plant produces finely dispersed vitamins, carotenoids and polyunsaturated fatty acids (PUFAs) in small starch, sugar or gelatine balls to enhance their stability and handling characteristics for further processing.

Contamination avoidance

Sørensen explained that the facility now has completely separate production lines to ensure that there is no cross contamination between gelatine-containing products and those without.

“That's an important concern for customers who supply vegetarian, allergen-free, kosher or halal products," he added.

The company stated that the facility is certified in accordance with the Hazard Analysis and Critical Control Point (HACCP) system, and that it also operates according to GMP (Good Manufacturing Practice) guidelines.

Ballerup was recently inspected by the competent food safety authorities and subsequently approved as a food production site, while halal and kosher certification attest to BASF's compliance with Muslim and Jewish food laws in its production processes, added the supplier.

Cognis bid

Meanwhile, BASF is allegedly lining up a bid for Cognis, according to reports.

According to Reuters, which quotes two unnamed sources close to the negotiations, Cognis’ co-owners Permira PERM.UL and Goldman Sachs Capital Partners are looking for at least €3.5bn for Cognis, including the company’s €2bn debt.

No comment was received from BASF, Permira and Goldman Sachs, and Reuters’ unnamed sources said that other potential buyers are interested.

Offers to buy the food ingredients and care chemicals company in 2006 were turned down as they were deemed to be too low at that time.

The current owners bought Cognis in 2001 for €2.5bn, but possible price tags now being bandied about are as low as €1.6bn.