BASF’s Ludwigshafen complex is experiencing two contrasting developments: plant utilization has improved, while the number of employees has fallen to its lowest level in more than seven decades.
In its half-year results released on July 29, BASF said that supply disruptions associated with the conflict in the Middle East had improved operating rates at Ludwigshafen. Restrictions affecting energy and petrochemical trade reduced some of the import pressure facing European producers and supported regional pricing and plant utilization.
The improved market environment was reflected in BASF’s second-quarter performance. Group sales reached €17.2 billion, an increase of €2.4 billion from the corresponding period of 2025. Prices rose by 11.5%, while sales volumes increased by 7.3%.
EBITDA before special items climbed by €854 million to €2.4 billion, with the Materials, Chemicals and Industrial Solutions segments providing much of the improvement. BASF subsequently raised its full-year earnings guidance.
At the same time, restructuring at the company’s largest production site has accelerated. BASF said the number of full-time-equivalent employees at BASF SE in Ludwigshafen was brought below 30,000 in May 2026, the first time it had fallen beneath that level since 1954.
Between January 2024 and the end of June 2026, BASF reduced its global workforce by approximately 7,000 positions, excluding job reductions related to divestments and the workforce expansion at its new Zhanjiang Verbund site. Around 3,500 of those reductions were completed in the first half of 2026 alone.
The decline is part of a wider effort to reduce fixed costs and restructure the asset base at Ludwigshafen. BASF has closed or adjusted less competitive production facilities and assessed more than 850 units across the complex. The proportion classified as highly competitive increased from 78% in 2024 to 88% in 2026, according to the company.
BASF had achieved approximately €2 billion in annualized cost savings by the end of June and remains on track to reach around €2.3 billion by the end of 2026. The company also raised its forecast for full-year EBITDA before special items to €6.9 billion–€7.7 billion, compared with its previous range of €6.2 billion–€7.0 billion.
The higher operating rate should not, however, be interpreted as a complete recovery for Europe’s chemical sector. Supply interruptions outside Europe have provided temporary pricing support, but the industry continues to face weak regional demand, relatively high energy costs, global overcapacity and increasing competition from newer Asian production assets.
Ludwigshafen may be becoming smaller and more efficient, but the fall below 30,000 employees demonstrates the scale of BASF’s transformation. The company is not merely responding to one weak business cycle; it is redesigning the asset base, workforce and operating structure of its most important European site.
