BASF's Ciba integration plan includes 3700 job reductions

BASF has finalized its plans for the integration of Ciba Holding AG, which it acquired in April 2009. Under the plans, former Ciba businesses are to be integrated into the operating divisions in BASF's Performance Products segment. The integration will involve extensive restructuring measures that BASF expects to generate synergies of at least EUR 400 mln per year from 2012 onward. The measures will include 3,700 job cuts by 2013, the majority of which will be eliminated by 2010 end. The Company is considering to sell or to close 23 of the 55 former Ciba production sites worldwide and will decide on these sites by the end of Q1 - 2010. The remaining 32 sites are to be optimized as part of BASF's global production network or restructured, the Company said. By 2010 end, BASF also aims to consolidate 36 of the former Ciba's 70 sales and administrative offices and research sites with existing BASF activities. By 2010 end, the measures are expected to save EUR 300 mln. Also, the integration process is expected to entail cash costs totaling approximately EUR 550 mln, about EUR 150 mln thereof in 2009. BASF's European business unit for plastic additives and the global units for technology management and the restructuring of the pigments business have been relocated to the former headquarters of Ciba Holding AG in Basel. BASF is also establishing a new Business Center Switzerland and research centre in Basel. Ciba's plastic additives business will be integrated into the Performance Chemicals division. This will extend BASF's portfolio to cover important product segments such as UV stabilizers and antioxidants, making BASF the world leader in plastic additives. Also, all Ciba's coatings effects activities are to be integrated into BASF's Dispersions & Pigments division, which is organized in regional business units. This will make BASF the world's second-largest provider of raw materials for the coatings and paints industry.
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