Engelhard sold; Eastport officials concerned

EASTPORT – BASF Aktiengesellschaft of Frankfurt has a presence in this seaside community with the June acquisition of Engelhard Corp.

Engelhard Corp. operated its pearl essence business out of a complex on the Staniels Road. At one time the company employed around 200 people.

Although the announcement was made in June, officials in Eastport didn’t learn of the change until July.

BASF’s media relations spokesman, Theodore Lowen, in a telephone interview Thursday made much of the fact that BASF’s purchase of Engelhard was announced on the Web in June. “That was a few months ago. They put it out on the business wire all around the world. Is there an Internet in Maine?” he asked sarcastically.

Although the announcement was made worldwide in June, city officials in Eastport didn’t officially learn of it until July 28 when City Manager George “Bud” Finch received a letter from the company.

In its letter, Finch noted that the giant chemical company said it was looking forward to being a “vital” part of the city’s community.” He said the company’s chairman and chief executive officer Klaus-Peter Lobbe signed the letter.

“BASF is committed to offering a stimulating environment for our employees. In addition, we place a strong emphasis on environment, health and safety with a commitment to service in the communities where we work and live,” Lobbe said.

But city officials are worried. “While we continue to have hope for the future of the local facility,” Finch said Wednesday, “we are deeply concerned in cutbacks in employment, simultaneous with the closing of the sale, and rumors of complete closure of the local operations.”

Finch said that Engelhard, formerly the Mearl Corp., was a major employer in the 1950s and 1960s. He said the company at one time made a variety of products from herring that included fertilizer, firefighting foam and pearl essence products. Eventually the fertilizer and foam business went by the wayside and the local company focused on natural pearl essence.

“Pearl essence has been replaced in modern times by synthetics, but the very high-end elite lipsticks and polishes still uses the natural pearl from herring scales,” Finch said. “They put the scale through a chemical process and wash the pearl out of it.”

At its peak, the company employed about 200 people and was a significant part of the commercial tax base for the city, Finch said. Today it employs few people. “They’ve been downsizing continuously over a number years. I believe they were down to eight to 10 employees. … I believe they are down now to about four,” the city manager said.

Asked about the possible closure of the Eastport operation, Lowen declined to comment. “We don’t comment on rumors, but I can tell you that no decisions have been made,” he said.

Asked about a decrease in staff, Lowen said the facility employed fewer people than a few years ago. “But it is certainly operating,” he said.

In his letter to Finch, Lobbe said that the world leading chemical company’s portfolio ranged from chemicals, to plastic performance products, agricultural products and fine chemicals to crude oil and natural gas.

BASF Corp., headquartered in New Jersey, is the North American affiliate of BASF AF of Ludwigshafen, Germany. “We posted sales of approximately $11.3 billion in 2005 and currently employ about 16,000 people in North America,” Lobbe said in his letter to Finch.

Lobbe said that Engelhard brought “market-leading” products in catalysts, pigments, minerals, personal care and absorbents as well as new research and development capabilities to BASF. “We have great respect for Engelhard’s people and look foreword to retaining their outstanding talent to build the best team in the industry,” Lobbe said. “Together, we will become the work market leader in catalysts, enhancing our capabilities in appearance and performance technologies and build a unique and powerful global R&D platform for catalysts.”