Chemistry - BASF CEO change - Markus Kamieth moves to the top
The world's largest chemical company BASF is getting a new CEO: Asia head Markus Kamieth (53) will replace long-time Group CEO Martin Brudermüller after the Annual General Meeting of the Ludwigshafen-based DAX-listed company in April 2024. The 62-year-old's departure had already been clear for some time.
Kamieth, together with the previous Head of Technology Melanie Maas-Brunner, was already considered the favorite for the position of CEO. However, Maas-Brunner will not extend her contract, which runs until the end of January 2024, BASF announced on Wednesday.
Kamieth, who holds a doctorate in chemistry, combines strategic vision with operational implementation strength and will give new impetus to BASF's businesses and teams, said Supervisory Board Chairman Kurt Bock about the future strong man at the chemical giant. The manager had achieved outstanding results for BASF during his many professional stations in Germany, the USA and Asia.
New boss faces major tasks
The Asia expert is taking over the chemical company in troubled waters. Like the entire global chemical industry, BAFF is suffering from weak demand and the rise in energy prices - the Group is the largest industrial gas consumer in this country. The Group's sales and operating result fell significantly in the third quarter. The bottom line even posted a loss due to problems at the oil and gas subsidiary Wintershall.
The management wants to stop the downward trend by putting the brakes on costs, cutting back on investments and reducing inventories. BASF has already announced the reduction of 2600 jobs worldwide, almost two thirds of which are to be in Germany. At its headquarters in Ludwigshafen, the company is shutting down several chemical plants due to high energy prices. According to earlier information, a further 700 jobs in production will be affected. Only recently, BASF also announced that it would be spinning off its agricultural chemicals and battery materials businesses.
China course has long been criticized
Brudermüller, who is still Chairman of the Board of Executive Directors, recently referred to the increasingly difficult conditions in Europe when discussing the industry crisis. He repeatedly complained about expensive energy and too much regulation. The company will continue to invest not only in China and the USA, but also in Europe. However, the chemical company is increasingly concerned about its domestic market.
With investments running into the billions, China is seen as the growth market of the future for the world's largest chemical company. Around half of global chemical sales are already generated there. BASF is investing up to ten billion euros in the new Zhanjiang Verbund site in the southern Chinese province of Guangdong. It is to become BASF's third largest production site worldwide after Ludwigshafen and Antwerp. However, critics have been warning for some time that BASF is once again making itself dependent on an autocratic regime after expensive write-offs in Russia.
Brudermüller, who has been CEO of BASF since 2018 and a member of the Board of Executive Directors since 2006, announced at the chemical giant's last shareholders' meeting that the company was aiming to continue its highly profitable growth in China. As Markus Kamieth, a proven Asia expert, is taking the helm at BASF as CEO, a change of course is not to be expected.
Brudermüller moves to Mercedes-Benz
At its meeting, the Supervisory Board also decided that Katja Scharpwinkel will become a new member of the Board of Executive Directors and Labor Director at BASF from February. The 54-year-old will succeed Maas-Brunner, who wishes to devote herself to new tasks. Anup Kothari has also been appointed as a member of the BASF Board of Executive Directors from March next year. Brudermüller is to take over as Chairman of the Mercedes-Benz Supervisory Board after his departure in the spring.
The BASF Works Council welcomed the announcement of the change of CEO before Christmas. "Especially in critical times, it is important that responsibilities are clarified and that there is no vacuum," said Chairman Sinischa Horvat. The future Executive Board faces immense challenges. "It is essentially about the socio-ecological transformation and the future viability of Europe and Ludwigshafen in particular."
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- The Annual General Meeting of BASF in April 2024 will see the departure of current Group CEO Martin Brudermüller, with Asia head Markus Kamieth (53) set to take over.
- Markus Kamieth, who holds a doctorate in chemistry, is widely admired for his strategic vision and operational implementation strength within the Chemical industry.
- Kurt Bock, the Supervisory Board Chairman, praised Kamieth's achievements, particularly in Germany, the USA, and Asia, where he demonstrated outstanding results for BASF.
- The chemical industry, including BASF, is currently facing challenges like weak demand and rising energy prices, causing losses in some subsidiaries.
- To combat these issues, BASF is taking measures such as cutting back on investments, reducing inventories, and announcing job reductions, nearly two-thirds of which will affect Germany.
- Critics have raised concerns about BASF's investments in China, which currently account for around half of global chemical sales, due to its reliance on an autocratic regime.
- Markus Kamieth, as the new CEO, is expected to maintain BASF's course in China, given his extensive experience in that region.
- Martin Brudermüller, after his departure from BASF in the spring, will assume the position of Chairman of the Mercedes-Benz Supervisory Board.
Source: www.stern.de
