Sustained decline in demand make short-time working inevitable at BASF

Global chemical group, BASF has taken to several measures including curbing capacity utilization rates, reducing working hours at several European sites and site closures at North American facilities to combat the sustained decline in demand due to customer destocking. Expecting severe business conditions to continue further, BASF is currently running less than 75% of the group's total capacity utilization rate. BASF reduced the utilization rates at its production plants at its six Verbund sites worldwide in mid-November. BASF will carry out short-time working for approximately 1,500 employees at BASF Coatings' site in Münster, Germany, and for 180 employees in Schwarzheide, Germany in February. Working hours have already been reduced for about 150 employees at two smaller coatings sites in Italy. In addition, the company's management has already agreed a preliminary framework with employee representatives that will allow the rapid introduction of short-time working in Ludwigshafen if necessary. Accelerating restructuring and efficiency measures, BASF has already announced plant closures in North America and Asia: Examples include a BASF coatings site in New Jersey and a production plant for precursors for plastics in Korea.