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04-24-2013

BASF: Restructuring of the Businesses with Plastic Additives

BASF SE, Ludwigshafen, Germany, aims to improve the efficiency and profitability of the Plastic Additives and Pigments & Resins business units in Europe, which are mainly located in the Basel area.

In the Pigments & Resins business unit, European product and quality management and product safety will be pooled in Ludwigshafen. Global product management lead will be bundled in Hong Kong. In this way, synergies can be generated by bundling expertise and competencies.

In the Plastic Additives business, a more market-oriented approach will be introduced. The product-related development and application technology will sharpen its focus on key topics and customer industries and will be organized more efficiently through a network of global competence centers in different locations worldwide. In addition, supporting functions, such as technology and strategy management as well as controlling, will be consolidated in Ludwigshafen.

The adjusted market strategies will lead to a decrease in the need for product-related research in plastic additives and pigments in the Research Center Basel. Therefore, the Research Center Basel will be scaled down and better aligned with the further developed strategy of BASF. There will also be less need for administrative services provided by the Business Center Switzerland for the BASF Group companies in Switzerland. This will lead to a job reduction in the Basel-based Business Center Switzerland. The Paper Chemicals division, headquartered in Basel, is not affected by the current measures.

BASF has already announced that it is combining its businesses with water, oilfield and mining solutions into a new global business unit. In the business with leather and textile chemicals, the company will increase its focus on the growing Asia Pacific region and high value-adding applications such as applications for the leather automotive industry and premium textile articles. The global R&D activities for both businesses will be established in Shanghai, China.

The restructuring will lead to a reduction of a total of up to 350 positions in the Basel area by the end of 2015. This includes the pooling of tasks at other sites. BASF aims to implement the job reductions related to the restructuring measures in the Basel area in a socially responsible manner. BASF will attempt to find job opportunities in other BASF Group companies for as many employees as possible. Further details are subject to consultations with employee representatives on the basis of the existing social plan.

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