Sector News

Germany’s BASF to cut 6,000 jobs, mainly in administration

June 28, 2019
Chemical Value Chain

BASF will cut 6,000 jobs worldwide, mainly involved in its central administration, in a move it said will achieve annual savings of 300 million euros ($341 million) from 2021 and give more power to customer-facing executives.

Chief Executive Martin Brudermueller, who took over little over a year ago, is seeking to refashion the German chemical industry giant, which has until now relied on cost efficiencies from mass production, to react more quickly to customer demands.

“The role of regions and countries is being sharpened. They represent BASF locally and support the growth of business units with local proximity to customers,” BASF, which has more than 120,000 staff, said in a statement.

BASF, a maker of petrochemicals, coatings, catalytic converters and foams, last month said it was aiming for growth in 2019 operating profit at the lower end of a 1-10% range, despite analyst predictions of a decline in full-year earnings.

It has warned the forecast could be in danger if trade disputes continue to be a drag on global markets, but a spokesman said the job cuts were driven by longer-term considerations and had nothing to do with the business cycle.

The cutbacks and savings target are part of a restructuring program unveiled in November, with 2 billion euros in annual contributions to earnings before interest, taxes, depreciation and amortization (EBITDA) from 2021 onwards.

BASF said about half of the cutbacks would be in Germany, with most of these at its Ludwigshafen headquarters.

It will start talks with German shop stewards over a follow-on deal to an existing agreement on job security in Ludwigshafen that will run out at the end of next year.

By Ludwig Burger

Source: Reuters

comments closed

Related News

January 23, 2022

Eastman invests US$1B in world’s largest molecular plastics recycling facility in France

Chemical Value Chain

Eastman is investing up to US$1 billion in building what it says is the world’s largest molecular plastics recycling facility in France. The new facility would use Eastman’s polyester renewal technology to recycle up to 160,000 metric tons of hard-to-recycle plastic waste annually – enough plastic waste to fill Stade de France national football stadium 2.5 times.

January 23, 2022

LG Energy Solution opens books for South Korea’s largest IPO at up to $10.8 bln

Chemical Value Chain

Korean battery maker LG Energy Solution has opened the books to investors to raise up to $10.8 billion in the country’s largest initial public offering (IPO), according to a term sheet seen by Reuters. The shares will be sold in a price range of 257,000 won to 300,000 won ($216.19-$252.36) apiece to raise between $9.2 billion and $10.8 billion, the term sheet showed.

January 23, 2022

SHYNE, the largest consortium to promote renewable hydrogen in Spain, is born

Chemical Value Chain

The SHYNE (Spanish Hydrogen Network) project is the largest multisectoral consortium in Spain, created to promote the decarbonization of the economy through renewable hydrogen. SHYNE will have a total investment of €3.23 billion euros that will serve to develop more competitive technologies and evolve both the Spanish industry and its infrastructure towards decarbonization, generating more than 13,000 jobs.

Send this to a friend