BASF’s Big Restructuring: Cuts and Divestments on One Hand, Billion-Euro Investments on the Other

Global chemical giant BASF is undergoing major strategic shifts, simultaneously streamlining old businesses while pouring resources into new growth areas. In recent weeks, BASF completed two key moves that illustrate its transformation plan:

First, on August 15, BASF finalized the sale of its oil and gas exploration unit (Wintershall Dea’s E&P business) to Harbour Energy, exiting the traditional oil & gas sector. As the 72.7% shareholder of Wintershall Dea, BASF received about $1.56 billion (over ¥11 billion RMB) in cash from the deal and retains a 39.6% stake in the enlarged Harbour Energy . This divestment affects roughly 800 employees, who will transition under agreements reached with labor groups . The sale had raised some concerns in Germany about loss of carbon capture (CCS) technology, but authorities approved it, and Harbour will continue operating the business, ensuring critical CCS expertise is preserved . Proceeds from the sale will fund BASF’s major investments in coming years, notably its new Zhanjiang integrated chemical complex in China and expansion in clean energy-related businesses.

Second, on August 18, BASF signed an MOU with China’s Fourier Intelligence to co-develop new material solutions for next-generation humanoid robots . The partnership focuses on high-performance engineering plastics, polyurethanes, and thermoplastic elastomers for robotic applications. This indicates BASF’s strategic pivot toward emerging technology materials – leveraging its expertise to meet booming demand in robotics. (BASF has prior experience in robot materials, e.g. supplying TPU and nylon for collaborative robots.) Chinese chemical firms like Kingfa and Go-On are also entering this space, but BASF’s collaboration signals a bid to lead in advanced polymers for automation.

At the same time, BASF has been aggressively restructuring its operations, especially in Europe. Over the past year, the company shut down multiple plants in Germany – including facilities for TDI foam chemicals, adipic acid, caprolactam and more – as part of a cost-cutting drive . It also pulled out of a Xinjiang BDO joint venture in China, exiting that business in April 2025. These moves are tied to BASF’s 2022 program to reduce costs by €500 million annually, primarily in Europe, by optimizing its production footprint. CEO Martin Brudermüller (Dr. Martin Kerley) noted in Q2 2025 that further closures at the Ludwigshafen flagship site are possible if market conditions remain challenging.

On the growth front, BASF is in the late stages of building its massive new complex in Zhanjiang, Guangdong – a €10 billion petrochemical site, BASF’s largest investment ever in China . The site’s first units are already operational (a TPU plant started up in January, and the first batch of butyl acrylate was delivered in mid-August) . The core 1 million t/y ethylene cracker and downstream plants are scheduled to come on stream by end of 2025 . However, BASF acknowledges initial profits from Zhanjiang may be under pressure due to global and Chinese overcapacity in certain products . The company says it will ramp up the project cautiously, keeping an eye on market supply-demand dynamics. BASF is also investing in battery materials (it formed a strategic alliance with China’s CATL for cathode materials research ) and green energy projects like a large green hydrogen plant in Germany and a battery recycling pilot facility.

In sum, BASF’s “big change” involves cutting loose its fossil-fuel legacy and doubling down on innovation and Asia. By divesting traditional assets and investing over 100 billion RMB into new projects (from China to future technologies), BASF aims to adapt to a world of fierce competition and carbon-neutral goals. It is a balancing act of cost discipline and bold spending: closing and consolidating some operations, while simultaneously “betting big” (hundreds of billions) on new growth engines. Industry watchers see this as BASF repositioning itself for the long term – shedding weight where necessary, and steering toward markets like EV batteries, specialty materials, and Asian growth regions to secure its future in the evolving global chemical landscape.