BASF is restructuring the Ludwigshafen site for long-term success

BASF has conducted a comprehensive analysis of its asset structure in Ludwigshafen and is taking action with the goal of making the Ludwigshafen site a leading, sustainable chemical site in Europe and a solid pillar for its success.

“We have conducted a thorough analysis of the production asset structure in Ludwigshafen in light of current and future market and customer demand for chemicals. While most assets are competitive in their respective markets, our findings show that some plants and production lines are no longer generating sufficient returns, either due to a lack of competitiveness or structural underutilization,” explained Dr. Katja Scharpwinkel, member of the Board of Executive Directors of BASF SE and site director.

The first asset realignment measures resulting from this analysis are already being implemented, such as the announced closure of the adipic acid, cyclododecanone (CDon) and cyclopentanone (CPon) plants at the end of August 2024. “Further asset realignment measures are currently being evaluated and will be implemented in stages as required,” added Scharpwinkel.

In addition, BASF will realign the non-operating structure in Ludwigshafen and significantly reduce costs through a comprehensive range of measures. As already announced, BASF aims to achieve cost savings of around €2.1 billion per year (run rate) by the end of 2026. “The Ludwigshafen site will be leaner but stronger. It will have an even better competitive position on the European market and will be able to operate successfully in the medium and long term,” added Scharpwinkel.

BASF’s analysis also shows that all major value chains can compete on its market and that BASF will benefit from the transformative momentum created by the green transition. The site’s integrated Verbund system is uniquely positioned to offer solutions that help customers achieve the green transition. This is due to its inherent energy and resource efficiency, multiple entry points that offer feedstock flexibility and the ability to use renewable and recycled feedstocks in existing assets in a flexible and scalable manner.