- BASF ceases operations at its Ludwigshafen production centers
Germany's chemical giant, BASF, is planning to halt operations at certain facilities in Ludwigshafen, aiming to boost the site's profitability. The company announced that it will discontinue the manufacturing of adipic acid, cyclododecanone (CDon), and cyclopentanone (CPon) at its primary plant, impacting around 180 workers who will be provided with alternative roles within the firm.
As per board member Stephan Kothrade, "We are taking this action to improve the profitability of the entire value chain of the site." The company is adjusting its production layout to adapt to shifting market conditions.
South Korea and France production
The CDon and CPon factory is scheduled to shut down in the first half of 2025, with the remainder of adipic acid production in Ludwigshafen closing towards the end of the year. However, Kothrade mentioned that BASF will continue producing adipic acid in Onsan, South Korea, and its joint venture in Chalampé, France.
BASF explained that CDon plays a role in the synthesis of musk fragrances and UV stabilizers, while CPon serves as a component in the synthesis of pesticides and pharmaceuticals. Adipic acid is also utilized in the production of coatings and adhesives.
New strategy for the main plant
In July, BASF declared its decision to cease production of the active compound glufosinate-ammonium (GA) at sites in Knapsack and Frankfurt by the end of the year. Earlier in February 2023, BASF announced the closure of several chemical plants due to high energy costs, including one for ammonia and the plastic precursor TDI. The firm has announced numerous cost-cutting measures and layoffs affecting multiple departments, including the main plant in Ludwigshafen, for which a fresh strategy, referred to as a "vision," is now being formulated and is expected to be unveiled later this year.
The decision to halt the production of adipic acid, CDon, and CPon at BASF's main plant is part of a larger strategy to improve the site's overall profitability, as stated by board member Stephan Kothrade. Despite the closure of the CDon and CPon factory in Ludwigshafen, BASF will continue producing adipic acid in Onsan, South Korea, and its joint venture in Chalampé, France.
