2024-07-11 06:49:17
The chemical giant is suffering from rising energy prices and cost pressure. Now it wants to close two production plants for a weed killer. This is not the first cut in the BASF network.
The chemical company BASF is closing further production plants in view of cost pressures. The production of the active ingredient glufosinate ammonium (GA) at the Knapsack and Frankfurt sites will be stopped by the end of the year, the DAX company in Ludwigshafen announced. GA production in Frankfurt at the end of 2025. “After that, both production plants will be shut down.” The plan is to leave both sites after all activities, including dismantling, have been completed, a spokesman explained.
A total of around 300 jobs in the two chemical parks in Hürth (North Rhine-Westphalia) and in the Höchst district of Frankfurt are affected by the restructuring. The jobs will initially be retained until the end of 2025 and “will then be gradually reduced in consultation with employee representatives,” BASF explained.
BASF cited increasing competition from generic drug manufacturers, alternative technologies and high energy and raw material costs as reasons. Although costs have been reduced in both production plants, volume and profitability development are inadequate. The company will purchase the active ingredient from third-party suppliers in the future.
The active ingredient glufosinate ammonium is one of the most widely used broad-spectrum herbicides and controls weeds in many crops worldwide. However, it remains a key component in BASF’s herbicide portfolio, it said. At the same time, the company is focusing on developing next-generation GA solutions.
In February 2023, BASF had already announced the closure of several chemical plants due to high energy prices, including one for ammonia and the plastics precursor TDI. The company has announced several cost-cutting programs and the elimination of thousands of jobs. The cuts will also affect the main plant in Ludwigshafen. The company’s largest production site is to be restructured.