AMA Group Limited (ASX:AMA) and BASF Australia Limited (BASF) confirmed a renewed 10-year partnership for the continued supply of BASF’s automotive paint technology across the entire AMA Group network.
This new agreement extends the existing contract by two years and improves alignment of paint supply costs to the operating cash flows of the associated repairs. The new agreement sees the conversion of future one-off market incentive payments to ongoing payments received as purchases are made. The balance of the remaining first tranche of incentive, approximately AU$40 million ($10 million) will also be amortized over the term of the new 10-year
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