March 1, 2021

Covestro Continues Systems House Divestitures

Covestro sells joint venture shares in Dubai systems house

Next step in ongoing portfolio optimization process

• Proceeds in the mid-single-digit million euro range
• Closing expected in the first half of 2021
• Systems house continues doing business independently, Covestro remains key supplier

On February 25, 2021, Covestro has signed an agreement on the sale of its 51 percent share in the joint venture Pearl Covestro Polyurethane Systems FZCO, which operates systems house business in Dubai (United Arab Emirates), to the current co-shareholder Pearl Industries Overseas Ltd. The sale will generate proceeds in the mid-single-digit million euro range. The divestment is part of Covestro’s ongoing portfolio optimization process and marks a further step in the strategic focusing of the Polyurethanes segment. Subject to regulatory approval, the closing is expected in the first half of 2021.

The joint venture was established under the former name BaySystems Pearl in Dubai (United Arab Emirates) in 2006 and has supplied Polyurethane Foam systems for several projects in the region. The systems house business will continue to operate as Pearl Polyurethane Systems after the transaction is concluded. Covestro will remain a key supplier of polyurethane raw materials based on the contract signed.

Covestro already sold its North American systems house business in 2017. In 2019, the sale of the European systems house business with sites in the Netherlands, Denmark, Spain, and Germany, as well as further businesses in Italy followed.

https://www.covestro.com/investors/news/covestro-sells-joint-venture-shares-in-dubai-systems-house/

March 1, 2021

Covestro Continues Systems House Divestitures

Covestro sells joint venture shares in Dubai systems house

Next step in ongoing portfolio optimization process

• Proceeds in the mid-single-digit million euro range
• Closing expected in the first half of 2021
• Systems house continues doing business independently, Covestro remains key supplier

On February 25, 2021, Covestro has signed an agreement on the sale of its 51 percent share in the joint venture Pearl Covestro Polyurethane Systems FZCO, which operates systems house business in Dubai (United Arab Emirates), to the current co-shareholder Pearl Industries Overseas Ltd. The sale will generate proceeds in the mid-single-digit million euro range. The divestment is part of Covestro’s ongoing portfolio optimization process and marks a further step in the strategic focusing of the Polyurethanes segment. Subject to regulatory approval, the closing is expected in the first half of 2021.

The joint venture was established under the former name BaySystems Pearl in Dubai (United Arab Emirates) in 2006 and has supplied Polyurethane Foam systems for several projects in the region. The systems house business will continue to operate as Pearl Polyurethane Systems after the transaction is concluded. Covestro will remain a key supplier of polyurethane raw materials based on the contract signed.

Covestro already sold its North American systems house business in 2017. In 2019, the sale of the European systems house business with sites in the Netherlands, Denmark, Spain, and Germany, as well as further businesses in Italy followed.

https://www.covestro.com/investors/news/covestro-sells-joint-venture-shares-in-dubai-systems-house/

March 1, 2021

BASF Increases BDO & Derivatives Prices in Europe

BASF to increase prices for butanediol and derivatives in Europe

With immediate effect, or as existing contracts permit, BASF SE will increase its European selling prices for 1,4 Butanediol (BDO) and its derivatives:

1,4-Butanediol (BDO)                                                    + 800 EUR/mt

Tetrahydrofuran (THF)                                                 + 1.050 EUR/mt

Polytetramethylene ether glycol (PolyTHF®)              + 1.050 EUR/mt

N-Methyl-2-Pyrrolidone (NMP)                                      + 800 EUR/mt

N-Ethylpyrrolidone (NEP)                                               + 800 EUR/mt

BDO and its derivatives are used for producing engineering plastics, polyurethanes, solvents and elastic spandex fibers. PolyTHF^® is a registered trade mark of BASF Group in many countries.

Receive up-to-date news releases from BASF via push notification on your smartphone. Register for our news service at basf.com/pushnews.

https://www.basf.com/global/en/media/news-releases/2021/03/p-21-140.html

March 1, 2021

BASF Increases BDO & Derivatives Prices in Europe

BASF to increase prices for butanediol and derivatives in Europe

With immediate effect, or as existing contracts permit, BASF SE will increase its European selling prices for 1,4 Butanediol (BDO) and its derivatives:

1,4-Butanediol (BDO)                                                    + 800 EUR/mt

Tetrahydrofuran (THF)                                                 + 1.050 EUR/mt

Polytetramethylene ether glycol (PolyTHF®)              + 1.050 EUR/mt

N-Methyl-2-Pyrrolidone (NMP)                                      + 800 EUR/mt

N-Ethylpyrrolidone (NEP)                                               + 800 EUR/mt

BDO and its derivatives are used for producing engineering plastics, polyurethanes, solvents and elastic spandex fibers. PolyTHF^® is a registered trade mark of BASF Group in many countries.

Receive up-to-date news releases from BASF via push notification on your smartphone. Register for our news service at basf.com/pushnews.

https://www.basf.com/global/en/media/news-releases/2021/03/p-21-140.html

March 1, 2021

BASF Announces TDI and Polyol Increases

March 1, 2021

Dear Valued Customer,

Effective April 1, 2021 or as contracts allow, BASF Corporation is raising the price for all Lupranate® TDI products by $0.11 per pound, and all Pluracol® polyol products by $0.13 per pound.

Your BASF Account Manager will provide further details of this announced increase and is available to answer any questions you may have. We appreciate your continued support for BASF Urethane Chemicals.