Basf to sell expanded styrene business in Brazil to Tuscarora

Basf has signed a letter of intent with Tuscarora in order to sell its expanded styrene business in Brazil, which represented $ 30 mm to Basf over 1996 (15% increase in comparison to 1995). Basf has 4 expanded styrene plants in the country, 1 in Manaus (Amazonas), 1 in Recife (Pernambuco), 1 in Sapucaia do Sul (Rio Grande do Sul) and 1 in Sao Bernardo do Campo (Sao Paulo). The acquisition is to be finally concluded by Sept. 97 and Tuscarora aims to be the major shareholder, while Basf has not decided yet whether or not it will maintain a minor stake. Basf predicts that the domestic expanded styrene business is to be increased by 15% per year until the year 2000.