BASF, Fortitech Announce Global Venture in Premix Market

ANAHEIM, Calif.--Frankfurt, Germany-based BASF and Schenectady, N.Y.-based Fortitech Inc. announced a joint venture to manufacture, market and sell human nutrition premix products on a global scale. BASF (www.basf.com) will transfer its premix customers in Asia, Africa, Europe and South America to Fortitech's international companies, which will also assume ownership of BASF's premix manufacturing facilities in Denmark and Malaysia. BASF will also become Fortitech's primary supplier of a broad range of nutritional ingredients to be used in products ranging from baby formulas to supplements. This venture was announced June 17 at the IFT Food Expo, held here.

"This new joint venture represents a significant commitment by Fortitech to expand its global presence, particularly in Europe and Asia," said Walter Borisenok, Fortitech president.

This partnership builds upon the existing North American strategic alliance the two companies formed in June 2001. Under terms of that deal, BASF transferred its North American human nutrition premix customers to Fortitech while working together to maximize premix sales in Canada, Mexico and the United States.

In this newly announced venture, Fortitech's international companies will assume ownership of BASF's premix manufacturing facilities in Denmark in September. Fortitech (www.fortitech.com) will also begin constructing a new manufacturing plant and laboratory facility in Denmark, with more than double the capacity of its current facility. This project is expected to be completed by the end of 2003. In the meantime, Fortitech will integrate its technical and sales support teams, in addition to its in-house quality control program, at the existing Danish facility.

BASF plans to transfer its existing South American customers to Fortitech South America in July; Fortitech South America will assume manufacturing needs of BASF customers at Fortitech's existing facility in Campinas, Brazil. In January 2003, BASF will transfer its human nutrition premix plant in Malaysia to Fortitech.

"The joint venture is an endorsement by Fortitech of BASF's outstanding competencies in helping make products more nutritious," said Andreas Ultsch, BASF director of strategic marketing, human nutrition. "Likewise, it is also an endorsement by BASF of Fortitech's strengths in custom premix formulation and customer service."