BASF realigns business strategy

BASF is aiming to make the chemical company more profitable again by separating several business units from the Verbund system and transforming them into independent legal subsidiaries.

“Ultimately, it’s about improving performance, being closer to the customer and competing even more fiercely,” Chief Financial Officer Dirk Elvermann told dpa.

Company must prioritize

The manager emphasized that in these businesses, there will be an increased focus on business performance in the respective competitive environment. Ambitious targets for Ebita and cash flow would be set. He noted that in times when cash is no longer available in unlimited quantities, even at BASF, the company must prioritize more strongly. The main goal is to increase profitability, especially given the competitive disadvantage the European chemical industry is facing.

In December, BASF announced that the Agricultural Chemicals, Battery Materials and Coatings divisions would be established as independent legal subsidiaries. These segments are less closely linked to the rest of the Group. CEO Martin Brudermüller had rejected a sale of these divisions.

In June, BASF opened Europe’s first center for battery material production and recycling in Schwarzheide, north of Dresden. The Coating division is headquartered in Münster, while Limburgerhof is the center for global crop protection and seed activities.