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BASF to Close More Plants Amid Rising Costs
The chemical giant is struggling with increased energy prices and cost pressures. Now, it plans to shut down two production plants for a weed killer. This is not the first cutback in BASF’s network.
The chemical company BASF is closing more production plants due to cost pressures. The production of the active ingredient Glufosinate-Ammonium (GA) at the Knapsack and Frankfurt sites will cease by the end of the year, announced the DAX-listed company in Ludwigshafen. The GA production in Frankfurt will end in 2025. “Subsequently, both production plants will be shut down.” The plan is to leave both sites after all activities, including dismantling, are completed, a spokesperson explained.
The restructuring will affect around 300 jobs in the two chemical parks in Hürth (NRW) and the Höchst district of Frankfurt. The jobs are to be retained until the end of 2025 and “then gradually reduced in consultation with employee representatives,” BASF stated.
Another Restructuring at BASF
BASF cited increasing competition from generic manufacturers, alternative technologies, and high energy and raw material costs as reasons. Despite reducing costs in both production facilities, the volume and profitability development have been insufficient. The company will source the active ingredient from third-party suppliers in the future.
According to the company, Glufosinate-Ammonium is one of the most widely used broad-spectrum herbicides and controls weeds in many crops worldwide. It will remain a key component in BASF’s herbicide portfolio, they said. At the same time, they are focusing on developing the next generation of GA solutions.
In February 2023, BASF had already announced the closure of several chemical plants due to high energy prices, including one for ammonia and the plastic precursor TDI. The company has announced several savings programs and the reduction of thousands of jobs. The cuts also affect the Ludwigshafen headquarters. The largest production site in the company is to be restructured.