BASF aims to make the Ludwigshafen site a leading, sustainable chemical site for Europe and a strong pillar for its success.

“We conducted a thorough analysis of our production asset structure in Ludwigshafen based on current and future market and customer demand for chemicals. While the majority of the assets are competitive in their respective markets, our findings show that selected plants and production lines are no longer delivering sufficient earnings – either due to a lack of competitiveness or structural underutilization,” explained Dr. Katja Scharpwinkel, Member of the Board of Executive Directors and Site Director of BASF SE.  

First asset adjustment measures derived from this analysis are already in execution, e.g., the closure of the adipic acid, cyclododecanone (CDon) and cyclopentanone (CPon) plants as announced at the end of August 2024.

“Further asset adjustment measures are currently being assessed and will be implemented stepwise as required,” Scharpwinkel added.

In addition, BASF will adjust its non-operations structures in Ludwigshafen and bring down costs significantly through a comprehensive set of measures. As already announced, BASF targets total annual cost savings of around €2.1 billion (run-rate) by the end of 2026. “The Ludwigshafen site will be leaner but stronger. It will have a better competitive position in the European market and will be able to operate successfully over the medium and long term,” adds Scharpwinkel.

BASF’s analysis also shows that all major value chains can compete in their markets and that BASF will benefit from the change momentum associated with the green transformation. The site’s integrated Verbund system offers unique advantages to provide solutions that enable the green transformation of customers. This is due to its inherent energy and resource efficiency, multiple entry points that provide feedstock flexibility and the ability to use renewable and recycled feedstocks in existing assets in a flexible and scalable manner.