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BASF

BASF

Industry: 
Chemicals
Value of USG Contracts: 
27
Symbol: 
FWB:BAS
States: 
IL
NJ
NY
Country: 
Germany
Contact Information: 
Sources: 

"German chemical company BASF is weighing an investment of $4 billion in Iran, the daily Handelsblatt has reported, citing industry sources. Together with an Iranian company, BASF wants to build new petrochemical plants near Iran’s hub of petrochemical activities and gas industry in Assaluyeh, the paper said. BASF signed a memorandum of understanding with the National Iranian Oil Company about future cooperation in April... However, BASF is not the only group that was negotiating with the Iranians, the paper said. Industry sources said Munich gas manufacturer Linde was interested in investment worth billions of dollars in the Iranian petrochemical industry jointly with the Japanese Mitsui Group. According to Handelsblatt, Linde CEO Wolfgang Büchele has been in 'pre-business talks' with the Iranians for some time." (Press TV, "BASF, Linde mull massive Iran investment," 8/9/2016). 

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"Iran said on Friday that Germany’s BASF – the world’s largest chemical producer – plans to make an investment of as much as $4 billion in its petrochemical industry. Marziyeh Shahdani, the managing director of the National Petrochemical Company (NPC), has been quoted by the media as saying that negotiations are underway with BASF to construct a petrochemical township in southern Iran. The German company will have a share of 60 percent in the project which will be constructed in Parsian Special Industrial Zone. Hamid Reza Rostami, the NPC director for planning affairs, said in December last year that BASF’s planned investment in Iran will also involve a guaranteed market as well as the transfer of technology. 'BASF has decided to make direct investment in Iran, bringing in capital, technology, management and a guaranteed market for products which we welcome,' said Rostami. Iran’s officials had already announced that Germany’s Linde and Japan’s Mitsui are also negotiating with Iran over investments in the country’s petrochemical industry. BASF and Linde sent their executives with German Minister of Economy Sigmar Gabriel to Iran in July to discuss investment and transfer of technology." (Press TV, “BASF to invest $4bn in Iran petchem plan,” 2/12/2016)

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"BASF, the world’s largest chemical producer, plans $6 billion of investment in Iran’s petrochemical sector, director of planning at the National Petrochemical Company (NPC) Hamid Reza Rostami says. The German company will make the investment in Asaluyeh where Iran is carrying out its largest gas development project by tapping gas from the giant South Pars field in the Persian Gulf. 'BASF has decided to make direct investment in Iran, bringing in capital, technology, management and a guaranteed market for products which we welcome,' Rostami said on Monday. The announcement came a day after Iran opened a petrochemical forum in Tehran, with Minister of Petroleum Bijan Zangeneh appealing to foreign companies to re-open their offices in the Islamic Republic. BASF and industrial gases company Linde sent their executives with German Minister of Economy Sigmar Gabriel to Iran in July to discuss investment and transfer of technology." (Press TV, “BASF plans $6 billion petchem investment in Iran,” 12/14/2016)

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"A delegation from Germany's BASF, the world's biggest chemical producer, is expected to arrive in Tehran this week to discuss the prospect of implementing a 'megaproject' in southern Iran, managing director of the National Petrochemical Company said. 'BASF has expressed interest in investing in a megaproject in Iran,' Abbas Sheri-Moqaddam said, Moj News Agency reported. The project will likely include the construction of methanol-to-propylene and methanol-to-olefin production units. Sheri-Moqaddam said negotiations are in initial stages and the two sides have yet to pinpoint the site of the project." (Financial Tribune, "BASF Targets Megaproject in S. Iran," 10/27/15)

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"BASF CEO Kurt Bock says he has seen a great potential for investment in Iran during his week visit to the country this week. 'German technology, German quality work and German reliability are very highly regarded and so we see good chances to tie again into old developments,' Bock has been quoted as saying by Bloomberg. Iran has the second-biggest natural gas reserves, the fourth-biggest oil reserves, and a developing petrochemical industry, which will have an impact when Iran is more strongly integrated into the world economy, added the official who was part of a delegation that traveled to Iran with Economy Minister Sigmar Gabriel. Bock further emphasized that BASF has been operating in Iran since 1959, and that it had retained a small team in Iran after the US-engineered sanctions banned foreign investments in the country from 2011. Gabriel, who is also Chancellor Angela Merkel's deputy, arrived in Iran for a landmark visit to the country on July 20 heading a top business delegation." (PressTV, "Chemicals Major BASF Vows Return to Iran Market," 7/25/15)

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According to its own reporting as of 2013, BASF maintained two wholly-owned subsidiaries in Iran, BASF Iran (PJS) Company and BASF Polyurethanes Pars (PJS) Company. (BASF Website, “BASF Report 2013: BASF Group List of Shares Held 2013 pursuant to Section 313(2) of the German Commercial Code”) 

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Burkhard Weimer, Managing Director at BASF Polyurethanes Pars, is listed as a member of the Board of Directors of the German-Iran Chamber of Commerce. (Deutsche-Iranische Industrie-unde-Handelskammer, “Board of AHK Iran”; LinkedIn, “Burkhard Wiemer: Managing Director at BASF Polyurethanes Pars,” accessed 4/22/14)

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"Islamic Republic of Iran Ambassador to Berlin Ali-Reza Sheikh-Attar said here Thursday despite the unjustly imposed western sanctions the economic relations of Iran and Germany have grown well on a continuous process... Several renowned German companies are involved in major Iranian infrastructure projects, especially in the petrochemical sector, like Linde, BASF, Lurgi, Krupp, Siemens, ZF Friedrichshafen, Mercedes, Volkswagen and MAN." (Zawya, "Envoy: Iran-Germany Economic Ties Growing Well Despite Sanctions," 7/11/2013)

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"BASF first started doing business in Iran in 1959, a spokesman for the company said.  He said the company continues to operate in the country  and that it monitors its business activities in Iran to assure compliance with all legal requirements and trade regulations. The company also has sold chemical products to the United States military." The company has received $12.7 million in revenue and benefits from the US government for their investments in Iran during 2000-2009.  The company's business in Iran is currently active. (The New York Times, "Profiting from Iran, and the US," 3/6/2010)

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"Germany's trade ties to Iran stretch back to the Middle Ages, and many of the companies currently there have been active in Iran for decades. Some 85 German companies have operations in Iran, from chemical maker BASF AG to Deutsche Lufthansa AG and Bayer AG, and others such as Linde AG and Mercedes-Benz parent Daimler AG are active there, according to the Hamburg-based German-Iranian Chamber of Commerce. More than 7,000 companies conduct business there through local representatives. Germany has become such a big trading partner for Iran because so many of its companies provide the machinery and engineering prowess Iran needs to improve its infrastructure." (The Wall Street Journal, "German Firms Feel Pressure Over Tehran Trade," 10/3/09)

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"Several renowned German companies are involved in major Iranian infrastructure projects, especially in the petrochemical sector, like Linde, BASF, Lurgi, Krupp, Siemens, ZF Friedrichshafen, Mercedes, Volkswagen and MAN." (Payvand Iran News, "Iranian exports to Germany rose 50% last year," 12/8/08)

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Listed by U.S. Government as doing business in Iran. (U.S. Securities and Exchange Commission, List of Companies Doing Business With State Sponsors Of Terror, Removed from the Internet in July 2007)

Response: 

No response at this time.

Chemicals conglomerate that has done business in Iran since 1959, and continues to do business with both Iran and the U.S. Military.  BASF received $12.7 million in federal contracts and grants from the U.S. government from 2000-2010.  Maintains a subsidiary in Tehran, BASF Iran AG, and lists a joint Iranian venture, Iranian BASF Construction Chemicals Private Joint.