Why is BASF closing its EPS production unit in Ulsan, South Korea?

BASF is closing its Ulsan EPS production unit as part of a strategic global review to optimize its styrene-based product portfolio, respond to market changes, and strengthen competitiveness—driven by persistent oversupply and weak demand growth in the Asian EPS market, particularly in construction insulation and packaging, alongside high raw material costs that have eroded profitability at this site.

Will BASF’s EPS customers in Asia still be supplied after the Ulsan plant closure?

Yes—BASF stated it will ensure continued supply to customers during the transition period, and emphasized that its fully integrated, Europe-based styrene production system remains the cornerstone of its global styrene business, with no impact on existing European operations.

BASF to Close Ulsan EPS Production Unit

Jun 12, 2026

BASF announced it will close its expandable polystyrene (EPS) production unit in Ulsan, South Korea, by mid-June as part of a global layout optimization strategy. The move addresses regional oversupply and high costs while ensuring continued supply through its integrated European system.

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