FRANKFURT, Sept 25 (Reuters) - BASF is

planning a partial listing of its agricultural business because

the stock market is underestimating the unit's earnings

prospects within the group, the German chemicals giant's new CEO

told staff on Wednesday.

Markus Kamieth also said on a global call that BASF would

consider strategic options for its coatings business, which

mainly caters to the car industry, including a potential joint

venture or looking into having a different owner for the unit,

according to a recording of the call made available to Reuters.

A person familiar with the matter told Reuters that BASF did

not have any potential buyers for the coatings business lined

up. BASF, which is due to hold a capital markets day on

Thursday, declined to comment.

Kamieth has continued his predecessor's push to cut costs in

Europe and reduce the group's reliance on subdued markets there,

while building a 10-billion-euro ($11 billion) chemical complex

in southern China to tap into faster growth in Asia.

Kamieth told employees, however, that he was more optimistic

about the Ludwigshafen chemical complex in Germany, where BASF

is headquartered, than for many years.

The site is competitive "in its core" but about 15-20% of

the plants at the complex, which are "rather peripheral", would

have to be monitored for their competitiveness over the next few

years.

In December last year, BASF announced plans to turn its

agriculture, battery materials and coatings businesses into

autonomous units in a bid to boost earnings.

BASF's Agricultural Solutions unit had about 10 billion

euros in sales last year, competing with Bayer, Corteva ( CTVA )

and China's Syngenta.

($1 = 0.8941 euros)