Chemicals group - BASF shuts down further plants - 300 jobs affected
BASF Chemicals announces closure of Glufosinat-Ammonium (GA) production facilities at Knapsack and Frankfurt by the end of the year. The GA production in Frankfurt will end in 2025, followed by the decommissioning of both sites. A spokesperson from BASF in Ludwigshafen stated.
Approximately 300 jobs will be affected at the BASF sites in Hürth, North Rhine-Westphalia, and the Frankfurt district of Höchst. The jobs are initially expected to remain until the end of 2025, and will then be "gradually reduced in consultation with the works council," according to BASF.
The reasons for the restructuring include increasing competition from generic drug manufacturers, alternative technologies, and high energy and raw material costs. Although costs have been reduced in both production facilities, the volume and profitability development have been insufficient. BASF will source the compound from third-party suppliers in the future.
Next BASF Restructuring
Glufosinat-Ammonium, according to the provided information, is one of the most frequently used broad-spectrum herbicides and controls weeds in many cultures worldwide. It remains a key component in BASF's herbicide portfolio, the statement said. At the same time, the focus is on the development of next-generation GA solutions.
BASF announced the closure of several chemical plants due to high energy prices as early as February 2023, including one for Ammonia and the plastic precursor TDI. The company has announced several cost-saving measures and the elimination of thousands of jobs. The main production site Ludwigshafen is also affected. The largest production site in the company is to be rebuilt.
- Despite the closure of its Glufosinat-Ammonium (GA) production facilities in Knapsack and Frankfurt, BASF, based in Ludwigshafen, Germany, remains committed to GA, as it's a key component in their herbicide portfolio.
- The decision to close the GA production facilities in Frankfurt will be finalized by 2025, affecting around 300 jobs in Hürth, North Rhine-Westphalia, and the Frankfurt district of Höchst.
- BASF, a renowned chemicals group with a significant presence in Ludwigshafen and Rhineland-Palatinate, is undergoing restructuring due to rising competition, alternative technologies, and cost pressure from high energy and raw material costs.
- The company's focus now shifts towards sourcing the compound from third-party suppliers and developing next-generation GA solutions, striving to maintain its position in the global agriculture market.
- BASF, facing various challenges in its chemical sector, has announced closure of several other plants, including Ammonia and TDI, with the aim of implementing cost-saving measures and eliminating numerous jobs.
- The main production site in Ludwigshafen, the largest in the BASF group, is also facing restructuring due to these challenges, highlighting the impact of the current market conditions on the global chemicals industry.
