German chemical giant BASF hopes to acquire Solvay's nylon business for 1.6 billion euros by 2018.
In its 2017 annual report, released February 27, BASF said the previously announced acquisition will expand its use of engineering plastics in the transportation, construction and consumer goods industries and increase access to raw materials.
When it comes to performance, BASF Chairman Kurt Bock said the company "has achieved significant growth" and boosted profitability.
In the field of high performance products, annual sales slightly exceeded 16.2 billion euros, an increase of 560 million euros over the previous year.
However, sales declined slightly due to the combination of product mix measures in all sectors and the negative impact of currency.
Annual sales of the Functional Materials and Solutions segment increased 10% to 207 billion euros.
BASF attributes this increase to higher prices and sales, and the company acquired Chemetall, part of Albemarle, in December 2016.
The increase in sales is largely due to the rising demand for BASF products in the automotive and construction industries.
However, of the 1.6 billion euros of revenues, profits decreased by 329 million euros compared with 2016, mainly due to the decline in profit margin and the rise in fixed costs.
BASF estimates that by 2018 the global economy and chemical output will be basically the same as in 2017.