BASF, Fortitech Announce Global Venture in Premix Market 32652

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 andsell human nutrition premix products on a global scale. BASF (www.basf.com)will transfer its premix customers in Asia, Africa, Europe and South America toFortitech's international companies, which will also assume ownership of BASF'spremix manufacturing facilities in Denmark and Malaysia. BASF will also becomeFortitech's primary supplier of a broad range of nutritional ingredients to beused in products ranging from baby formulas to supplements. This venture wasannounced June 17 at the IFT Food Expo, held here.

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

This partnership builds upon the existing North American strategic alliancethe two companies formed in June 2001. Under terms of that deal, BASFtransferred its North American human nutrition premix customers to Fortitechwhile working together to maximize premix sales in Canada, Mexico and the UnitedStates.

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

BASF plans to transfer its existing South American customers to FortitechSouth America in July; Fortitech South America will assume manufacturing needsof BASF customers at Fortitech's existing facility in Campinas, Brazil. InJanuary 2003, BASF will transfer its human nutrition premix plant in Malaysia toFortitech.

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