The struggle to decide the fate of the BASF magnetic tape business is finally at an end: on 1 January 1997, BASF Magnetics GmbH (D-67001 Ludwigshafen) will sell its worldwide business in magnetic tape products to the Korean group Kohap. BASF and Kohap will conclude a 10-year job processing contract concerning the production of magnetic pigments. This means that plans for a sale to the Turkish group Raks (see Plasteurope.com Nos 16 and 18, 1996 for details) have finally been shelved. The workforce of BASF Magnetics fought vehemently against the Turkish group's involvement because of concern about insufficient competence and fears that the German production sites would be left out in the cold.

Kohap is a highly diversified and leading group in Korea with a total turnover of about DEM 6.7bn and 5,000 employees. It has 13 subsidiaries and 20 holding companies abroad. Its products include polyester films and other intermediates for the production of magnetic tape. The acquisition of BASF Magnetics represents an important achievement for Kohap as it opens the door to expansion in Europe, where the group anticipates good chances for its information technology. Large investments are planned worldwide in this field for 1997.