Focus on BASF shares – BASF: The history of the Badische Anilin- und Sodafabrik

• Friedrich Engelhorn founds the “Badische Anilin- und Sodafabrik” in Mannheim

• Close cooperation with the government during the first and second world wars

• BASF today: More than 100,000 employees in over 90 countries worldwide

The history of BASF began in 1856 when the first tar dye Mauvein, a starting material for the development of synthetic dyes, was discovered. Friedrich Engelhorn was the owner of a coal gas factory in Mannheim at the time and recognized the value of the coal tar that his company produced. At first he also produced synthetic dyes in his illuminating gas factory. However, he realized his vision of a company in which the entire production chain for synthetic dyes could be combined by founding the new company “Badische Anilin- und Sodafabrik” – BASF for short. The first factory was built in Ludwigshafen near Mannheim.

BASF: One groundbreaking development after another

In the years that followed, as in the entire history of the company, BASF was always a pioneer for new developments, ideas and research. In 1866, for example, the first company doctor in the entire German chemical industry was hired at BASF. From 1868, when chemist Heinrich Caro was hired as “head of research”, in-house research was started – just one year later, Caro and professors from the University of Berlin had achieved the first synthesis of a natural dye. This dye, called Alizarin, became BASF’s first worldwide sales success. A few years later, BASF took another big step with the commissioning of the first production plants in Russia and France, because at that time production abroad was not common in general. The start of operation of the first plant for ammonia synthesis (fertilizer production) in 1913 was also groundbreaking.

Chlorine gas as a warfare agent and merger to form IG Farbenindustrie AG

During the war years 1914-1918, one of the Berlin professors, Fritz Haber, was already head of the Prussian Ministry of War and, due to a lack of material for the production of ammunition, suggested using chlorine gas as a warfare agent. For this, BASF was the main supplier – in 1915 the so-called “chemical war” began with the first chlorine gas attack in Ypres in Belgium. It is estimated that more than 10,000 soldiers died in poison gas attacks during the First World War. Poison gas attacks were also continued in the Second World War – here the BASF production of the substance Buna took place partly in Auschwitz: forced laborers and prisoners of war worked in the BASF factories in both wars. As compensation for the victims, BASF acknowledged its role many years after the war and became a founding member of a foundation called “Remembrance, Responsibility and Future”. BASF paid 70 million euros to this foundation.

There were two further milestones between the wars: On the one hand, in 1925, BASF and five other chemical companies, including Bayer, merged to form “IG Farbenindustrie AG” (IG Farben). On the other hand, the magnetic tape and the first plastic were developed – many other inventions followed over the years.

From 1950: expansion and sustainability

Immediately after the war, BASF familiarized itself with the field of crop protection and created the first crop protection product in 1949. A few years later, Styropor was also invented and produced at BASF. The expansion began at the end of the 1950s: joint ventures and a location in Antwerp were founded, and there were also several takeovers – the BASF Group grew rapidly and was now active in many parts of the world. However, the first Verbund site in Asia only opened in 2000, and in 2005 the relationship with the Asia-Pacific region was expanded through cooperation with the Chinese company SINOPEC. A year later, the US Engelhard Corporation, the market leader in the field of materials for catalysis and surface refinement, was taken over – a big step onto the US market.

In the meantime, the topic of sustainability has also become increasingly important. Today, it is one of the strategic focal points alongside strengthening the company’s innovative strength and expanding the portfolio.

New corporate structure since 2019 and the huge product range of BASF

Today, BASF works with the goal of growing faster than the market and finding solutions to as many current problems as possible: So the company structure was changed in 2019 – now there are the six major areas Chemicals, Materials, Industrial Solutions, Surface Technologies, Nutrition & Care and Agricultural Solutions, which employ a total of more than 117,000 people at 367 locations worldwide. Transport, construction, chemicals, electronics, energy, nutrition (fighting hunger), plastics, coatings and agriculture are actually just a few of BASF’s fields of activity.

The appointment of Dr. Martin Brudermüller as CEO and CTO of BASF in 2018 was just one of many personnel changes that the Board of Executive Directors of BASF is currently going through. In addition, there are always minor or major scandals surrounding BASF products: In 2017, a carcinogenic chemical was detected in a material produced by BASF for mattresses, for example, and in 2020 the sale of pesticides by BASF made headlines in the media. Nevertheless, BASF has been one of the five largest chemical companies in the world for several years and was able to record sales of around 59 billion euros in 2019. In the Corona year 2020, this turnover fell by one to two billion euros compared to the previous year.

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Image sources: BASF