In a post-merger streamlining move, Degussa-Hüls (D-60287 Frankfurt) has sold its half of the two Ultraform polyacetals (POM) joint ventures to partner BASF (D-67056 Ludwigshafen). Some see this as the first step in Degussa-Hüls´ withdrawal from the plastics sector as its parent company Veba (Düsseldorf) prepares to merge with the Viag group (Munich). The POM deal is contingent on regulatory approval in Germany and the US, but this seems certain.

Ultraform GmbH (Ludwigshafen) has capacity to produce 32,000 t/y of POM, Ultraform Company at Theodore, Alabama, 30,000 t/y. A BASF spokesman said plans for raising US output to 44,000 t/y are on ice due to inadequate price levels. However, future expansion is not ruled out. On completion of the deal the German group will have worldwide capacity for 65,000 t/y of the acetal polymer. It trails Ticona and DuPont.

As Plasteurope.com went to press, market talk focused on the future of Degussa-Hüls´ PVC production subsidiary, Vestolit GmbH (D-45753 Marl). Chairman Uwe-Ernst Bufe said recently that in addition to Ultraform, in which Degussa had been a silent partner, the group planned to shed two more non-core businesses before the end of fiscal 1998-99 (30 September). He identified Vestolit as non-core. Solvin (D-30002 Hannover), the 75:25 PVC joint venture of Solvay and BASF, was mooted as a possible buyer, along with leveraged buyout specialist CVC Capital Partners. Vestolit last year talked to competitor Vinnolit (D-85737 Ismaning) about a merger, but this never materialised.