BASF is catalyst for change in China

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BASF said today that it has signed an agreement to acquire a motorcycle catalyst business in mainland China to meet the growing global demand for emissions-control technology.

BASF Catalysts will acquire Guilin REEcat Catalyst, a motorcycle emissions-control catalyst manufacturer based in Guilin, China. Terms of the deal were not disclosed. The transaction is expected to be completed by the end of the second quarter of 2007.

Global motorcycle production is expected to grow at 5 percent annually through 2011, with China expected to produce more than 40 per cent of all motorcycles. In 2008, China will adopt Euro III emissions regulations, which call for significant reductions of hydrocarbon, nitrogen oxide and carbon monoxide emissions from two-wheel vehicles. These tighter clean air regulations will cause demand for emissions systems to grow faster than overall motorcycle production rates worldwide.

REEcat is a developer of mobile emission-control technologies in China which manufactures and sells catalysts and systems for motorcycles and small engines. The company has a manufacturing plant and a research and development centre in Guilin, and sales offices in Guangdong and Chongqing, China.