BASF boss speaks of challenging times
Meeting in times of announced job cuts: government and BASF agree that something must be done in terms of economic policy. Topics such as energy, bureaucracy and infrastructure are discussed.
Markus Kamieth, the head of chemical giant BASF, has called for competitive conditions for his industry. ‘The European chemical industry is going through challenging times,’ he said after a meeting between the BASF leadership and the Rhineland-Palatinate state government, according to the state chancellery in Mainz. With its new strategic direction, BASF aims to be the chemical company that enables the green transformation of its customers. However, to do that, it still needs competitive conditions with a sustainable supply of energy and raw materials, as well as a reduction in bureaucratic hurdles.
The state government regularly meets with the head of the group, which is headquartered in Ludwigshafen. This time, the meeting was a bit more high-profile for a number of reasons. For one thing, BASF had recently announced a comprehensive restructuring of the group, with possible plant closures and additional job cuts, particularly in Ludwigshafen. For another, Kamieth and Alexander Schweitzer (SPD) met for the first time in their respective new roles as CEO and Minister President.
Schweitzer relies on strong social partnership
Schweitzer emphasised that the state government is very interested in ensuring that the Ludwigshafen site has strong long-term prospects. ‘It is important to us as a state government that the result of the process is a strengthened Ludwigshafen headquarters with good and secure jobs.’ The strong social partnership that has been practised at BASF for decades makes him confident that this will succeed.
Katja Scharpwinkel, head of the Ludwigshafen site, said that a successful BASF needs a strong Ludwigshafen site. The majority of the plants there are competitive in their respective markets, which are very good conditions for long-term transformation. Uwe Liebelt, president of BASF’s European Verbund sites, said that public infrastructure also plays an important role in the competitiveness of the Ludwigshafen site. This includes excellent road, rail and power grid connections, as well as pipelines for hydrogen and2. He added that the region faces considerable challenges as a result of the clean-up projects. Liebelt praised the state’s plans for a central permit and approval authority.
Minister Schmitt: Companies need planning security
Minister of Economics Daniela Schmitt also spoke out in favour of better framework conditions for companies like BASF. ‘Our companies need predictability and appropriate framework conditions in order to be able to position themselves internationally competitively,’ the FDP politician told the German Press Agency in Mainz. She said that further relief from an economic policy perspective is needed at the federal level, even after the fourth Bureaucracy Relief Act and the so-called Growth Opportunities Act were passed in the Bundestag at the end of September.
In June, Schmitt, along with around 50 companies and associations from Rhineland-Palatinate, had called for relief and better framework conditions in a statement in view of the high energy prices and the upcoming transformation in industry. Schmitt said that the measures proposed in the statement should be introduced at the European level in Brussels at the beginning of next year.
Source: dpa
Also read: “Lean but strong” – BASF plans major overhaul
