BASF to close chemical processing plants

BASF plans to close a number of plants at its site in Ludwigshafen, Germany as part of a cost-cutting restructure.

This includes its caprolactam, cyclohexanol, cyclohexanone and soda ash plants, the company said.

BASF will reportedly continue to operate its polyamide 6.6 production plants in the location. In total, 10% of site will be affected, including around 700 positions, it added.

“We are very confident that we will be able to offer most of the affected employees employment in other plants,” said Martin Brudermüller, CEO. “It is very much in the company’s interest to retain their wide-ranging experience, especially since there are vacancies and many colleagues will retire in the next few years.” Plans are for the measures to be implemented by the end of 2026 and are expected to reduce fixed costs by more than €200 million per year.

CO2 emissions in the Ludwigshafen location will also be reduced by around 0.9 million metric tons per year.

“Europe’s competitiveness is increasingly suffering from overregulation, slow and bureaucratic permitting processes, and in particular, high costs for most production input factors,” said Brudermüller. “All this has already hampered market growth in Europe in comparison with other regions. High energy prices are now putting an additional burden on profitability and competitiveness in Europe.”