BASF reaffirms commitment to Ludwigshafen despite cost-cutting measures
Despite a comprehensive cost-cutting program that includes job reductions, BASF has pledged its continued commitment to its Ludwigshafen headquarters. Site leader Katja Scharpwinkel emphasized the importance of transparency and the challenges the company and its workforce face.
BASF aims to save approximately EUR 1 billion by the end of 2026 to ensure the competitiveness of its Ludwigshafen headquarters. The program includes job cuts and places about 20% of production units under scrutiny. Nevertheless, site leader Katja Scharpwinkel affirmed Ludwigshafen’s critical role in BASF’s strategy, stating, “There will be no successful BASF Group without a strong Ludwigshafen site.”
Acknowledging employee concerns, Scharpwinkel highlighted the company’s efforts to communicate its plans transparently. “We explain why we are doing this,” she noted, adding that there is both understanding and uncertainty among the workforce.
Production under review
A key aspect of the savings plan involves evaluating production facilities to improve their competitiveness. According to Scharpwinkel, decisions on potential closures will only be made after thorough analysis. “At this point, I cannot responsibly predict how many units we may need to shut down,” she said.
Negotiations for a new site agreement, set to replace the current arrangement expiring at the end of 2025, will begin shortly. Scharpwinkel emphasized that the upcoming agreement must accommodate necessary changes: “We approach these negotiations with this mindset.”
BASF’s measures reflect broader challenges faced by the chemical industry, including rising energy costs and intensifying global competition. These developments could have significant implications for the sector.
