FRANKFURT, Sept 26 – BASF, the world’s largest chemical company, is set to unveil a new cost-cutting plan on Thursday.
The strategy comes in response to rising cost pressures and high energy prices, which have significantly impacted the company’s operations. The move aims to bolster efficiency and improve profitability amid challenging economic conditions, reported German news agency dpa.
It already launched a multibillion-euro saving programme in February, which included job cuts, the closure of plants, and plans to reorganise its main plant in the western German city of Ludwigshafen.
According to media reports, the new plan could lead to a reorganisation of BASF’s agricultural business, which was set up as a legally independent subsidiary company at the end of 2023, along with BASF’s battery materials and coatings businesses.
The former CEO of BASF, Martin Brudermüller, had rejected the sale of these subsidiaries.
Lower sales prices and poor business conditions for agrichemicals caused a slump in BASF’s figures in the second quarter of 2024.
But media reports now suggest that the agricultural business could be listed on the stock market for billions.
BASF, which is listed on the Frankfurt Stock Exchange’s DAX index of bluechip stocks, previously announced a comprehensive cost-cutting programme in 2022, which aimed to reduce annual costs by €1.1 billion (US$1.2 billion) by the end of 2026.
The plan included cutting 3,300 jobs worldwide, including 700 production jobs in Ludwigshafen, as well as shutting down several energy-intensive chemical plants.
The latest programme is to save an additional €1.1 billion over the same period at the main plant in Ludwigshafen.
