A CHEMICAL company with plants in the North-East is, poised to be one of the first to benefit from an economic recovery, say bosses.

Dr Jurgen Strube, chairman of German-owned BASF, said that while order books had still to show signs of a strong recovery he was confident.

The firm, with plants at Seal Sands, Teesside, and at Cramlington, Northumberland, performed well last year, with all businesses in the black despite high raw material prices and a market slump.

in the market.

"If the positive signals being sent by the indicators prove to be correct, then we will be among the first companies to benefit from the economic recovery,'' he claimed. "BASF has the right market position and a strong product portfolio.

The chemical firm, with plants at Seal Sands, Teesside, and at Cramlington, Northumberland, performed well last year with all businesses in the black despite high raw material prices and a general slump in the market.

Income from operations on the basis of ongoing business was 2.3 billion euros with sales from on going business realising 32 billion euros - a rise of more than three percent. A dividend of 1.30 euros per share - the same level as in 2000 - will be proposed at the annual meeting.

BASF says it was quick to take measures to adjust its activities in the slowing economy, last year, with plant cut backs and restructuring and expects to reduce costs by one billion euros by 2003.

A statement from the company says "the first fruits are already visible : In 2001, BASF achieved cost savings of about 250m euros. In the current year, the company aims to achieve two thirds of the targeted amount.''

The sell off of BASF's pharmaceutical business produced more than 6 billion euros which meant income before taxes and minority interests was 6.7 billion euros - 3.9 billion euros more than in 2000.