The Head of BASF is keen on cutting costs yet prepared to splurge massive sums.
Despite the economic downturn affecting even giants like BASF, their new CEO, Markus Kamieth, is pushing for substantial investments to enhance and expand their Ludwigshafen site. In an interview with "Handelsblatt," he expressed his wonder at the 78% of facilities regarded as future-ready, calling it impressively high. Over the coming years, BASF plans to shell out billions for preserving, updating, and expanding their headquarters in response to the global economic slump.
Simultaneously, there's a need for cutting costs. By 2026, Ludwigshafen's expenses are slated to decrease to the tune of 1.1 billion euros, which constitutes nearly half of the global savings target of 2.1 billion euros. Amidst discussions about potential plant closures due to incompetitiveness, which affects Ludwigshafen too, dismissals related to operational reasons have been ruled out until 2025.
In principle, according to Markus Kamieth, there's no issue with considering a new location agreement. However, it should align with BASF's strategy focusing on additional cost savings, apart from investments. He remains hopeful that this can be achieved in collaboration with the workforce. If a location agreement that symbolizes 'leaner but stronger' emerges, he fully supports it.
Despite China's economic weakness, the CEO remains committed to the proposed 10 billion euros investment, where BASF seeks to establish a new integrated site. He maintains that he remains optimistic about China's economic growth in the medium and long term, although there's a need to adapt to lower growth rates.
The CEO, Markus Kamieth, mentioned the importance of considering a new location agreement for BASF's Ludwigshafen site, stating that it should align with their strategy of additional cost savings. The Commission will need to review this proposal carefully, considering its potential impact on the workforce and the company's overall strategy.
In his quest to make BASF's Ludwigshafen site more future-ready, Markus Kamieth expressed his belief that a new location agreement could symbolize a 'leaner but stronger' approach, which he fully supports. The Commission must thoroughly analyze this idea, ensuring it aligns with the company's long-term goals and strategic vision.
