BASF shuts PS plant at Ludwigshafen as demand slides; European capacity curtailed by 15%

25-Jun-09

BASF has announced to shut one polystyrene plant at the Ludwigshafen site effective June 30, 2009 due to slide in demand. This will reduce BASF's annual production capacity for the standard plastic polystyrene in Europe by 80,000 to 540,000 metric tons, a capacity reduction of about 15%. The affected plant, which has been out of operation since mid-April, will be dismantled. Personnel working at this plant will transfer to other positions within the company. The company said it will continue to produce polystyrene in Ludwigshafen for the manufacture of its two insulation products Styrodur® C and Neopor® (extrusion-based). In the future, orders for Polystyrene from European customers who had previously been supplied from Ludwigshafen will be filled mainly from the plant at BASF's Verbund site in Antwerp, Belgium. "We are working intensively to restructure our Styrenics business and increase its profitability. In doing so, we are investigating all options in order to strengthen the business on a sustainable basis. This also includes reducing production capacities. We nevertheless still intend to sell this business," explained Dr. Joachim Streu, head of BASF's Styrenics business.