BASF Signs Agreement to Divest Softex Business to Govi Cast

BASF has signed an Asset Purchase Agreement to divest its Softex business to GOVI CAST Sdn. Bhd., a supplier of speciality chemicals. The agreement covers the transfer of the customer portfolio, formulation expertise, and production know-how, along with a tolling and supply arrangement to ensure a smooth transition. The transaction does not include the transfer of any physical assets.

The Softex portfolio includes calcium and ammonium stearate dispersions, which are primarily used as anti-tack and mould release agents in glove manufacturing, as well as in applications such as cement mixing and textile coatings. Production of these Softex grades has been carried out at BASF’s Cimanggis site in Indonesia.

As part of the agreement, GOVI CAST Sdn. Bhd. will acquire the customer portfolio and assume responsibility for sales to BASF’s existing customer base, which is primarily located in Southeast Asia, including Malaysia and Indonesia. To ensure continuity during the transition, BASF will continue supplying Softex products from its Cimanggis site under a tolling arrangement until GOVI CAST completes the transfer of formulation and production know-how at its Port Klang facility. This approach will enable a smooth transition from Softex products to GOVI CAST-branded grades while maintaining a stable and reliable supply for customers.

“This divestment reflects BASF’s commitment to focus on strategic growth areas within Care Chemicals, while ensuring our customers experience a seamless transition,” said Parthiv Amin, Senior Vice President, Global Business Unit Industrial Formulators. “GOVI CAST’s expertise and strong presence in specialty chemicals make them an ideal partner to take this business forward.”

“We are excited to integrate Softex into our portfolio,” said Francis Himpe, Managing Director, GOVI CAST. “This acquisition strengthens our position in the glove manufacturing market and allows us to deliver even greater value to customers across Asia Pacific. Our focus will be on introducing innovations that meet evolving industry needs.”

The global gloves market has experienced strong growth, driven by rising hygiene standards and increasing healthcare demand. Southeast Asia—particularly Malaysia—accounts for around 65% of global production, and Softex products have supported this industry for decades.

Both parties have agreed not to disclose the financial terms of the transaction. The deal remains subject to customary closing conditions.

Source: BASF