Chemicals giant BASF is to close its production facilities due to rising energy prices, the Dax press service in Ludwigshafen announced on July 10.
It should be noted that production of the herbicide glufosinate ammonium (GA) will be discontinued at the Ranz and Frankfurt plants at the end of the year.
“Both production facilities will subsequently be closed.”– the press service reported. Both facilities are planned to be abandoned after completion of all work, including dismantling, a company representative explained.
In total, the restructuring of production will affect around 300 jobs at two chemical parks in Hürth (North Rhine-Westphalia) and in the Hoechst district of Frankfurt am Main.
In a first stage, jobs will be maintained until the end of 2025, and then “will be progressively reduced in coordination with the workers’ representation”said BASF.
BASF management cites increasing competition from generic manufacturers, alternative technologies and high energy and raw material costs as reasons for the production closure.
Despite cost reductions at both sites, volume and profitability were low. In the future, the consortium plans to purchase the active ingredient from third-party suppliers.
As a reminder, the active ingredient in the product, glufosinate ammonium, is one of the most widely used broad-spectrum herbicides. It is widely used worldwide to control weeds in many crops.
Despite the closure of production, the concern is to develop the next generation GA.
BASF’s announcement about plant closures is not the first. In February 2023, the consortium announced the closure of several chemical companies, including one producing ammonia and plastic precursor TDI. The reason was the same: due to high energy prices,
At the same time, BASF announced several austerity programs and thousands of job cuts. The cuts even affected the main plant in Ludwigshafen. The company’s largest production site is to be rebuilt.
Source: Rossa Primavera
I am Michael Melvin, an experienced news writer with a passion for uncovering stories and bringing them to the public. I have been working in the news industry for over five years now, and my work has been published on multiple websites. As an author at 24 News Reporters, I cover world section of current events stories that are both informative and captivating to read.