LUDWIGSHAFEN (dpa-AFX) - The BASF Group sees the shutdown of several plants at its main site in Ludwigshafen as a sign of far-reaching changes in the domestic chemical industry. "The chemical industry in Germany has lost around 23 percent of its production volume within two years," a company spokeswoman told the German Press Agency. "This is only partly for economic reasons, but also for structural reasons." The industrial landscape as a whole will also continue to change. "To speak of an impending deindustrialization of Germany would be an exaggeration."

BASF had announced in 2023/24 that it had shut down or would shut down eleven of a total of around 200 plants in Ludwigshafen - including one of the two ammonia plants. The company said it wanted to remain competitive and secure its market position. The ammonia, methanol and melamine plants are to be sold, dismantled and relocated. Global marketing will be handled by a specialist company.

No sign of possible abandonment of Ludwigshafen

The shutdown of the plants is not a sign of a possible abandonment of Ludwigshafen as a location, the spokeswoman assured. "BASF is not turning its back on Ludwigshafen and Germany and has no plans to do so in the future. BASF will continue to invest in the maintenance, modernization and expansion of the Ludwigshafen site - around two billion euros annually over the next few years." The site in the second-largest city in Rhineland-Palatinate is to be developed into the leading low-emission chemical site in and for Europe.

Recently, however, the Group also announced another multi-billion euro savings program and further job cuts in Ludwigshafen. The company's largest production site is to be reorganized. Specifically, additional annual costs of one billion euros are to be saved there by the end of 2026. BASF had already announced a global savings program in 2022. The aim is to reduce annual costs by 1.1 billion euros by the end of 2026. This includes cutting around 3,300 jobs worldwide, 2,500 of which are in Ludwigshafen, 700 of which are in production.

Open-ended analysis

The shutdown of further plants is possible, in Ludwigshafen or at another location. "In principle, we are continuously reviewing our product and asset portfolio for optimization potential," emphasized the spokesperson. The concrete measures for the savings program specifically for Ludwigshafen are currently being worked out. "This requires a careful analysis, which we are conducting with an open mind. We are not ruling out any measures."/wo/DP/stk