Closures and cutbacks at BASF
German chemicals specialist BASF has decided to close around 80 plants across the world on a temporary basis. It will also cut production at about 100 plants. Approximately 20,000 employees will be affected by the production cuts including around 5,000 at its main site in Ludwigshafen. The company attributes these actions to a major decline in demand, which would lead to overcapacities if production continued as normal.
Implementation of most of the measures has already started and reduced capacities are expected to last until January 2009. The company has brought forward scheduled maintenance to coincide with the reduced production levels.
“We already drew attention to the difficult economic situation at the end of October. Since then, customer demand in key markets has declined significantly,” said Dr Jürgen Hambrecht, chairman of the board of executive directors.
“How the coming year will develop is difficult to foresee. BASF is preparing for tough times.”
