BASF announces plant closures in Ludwigshafen – News and insights for the European coatings industry
In a significant move that reflects the ongoing restructuring within the chemicals sector, BASF has announced plans to cease production of several key materials at its Ludwigshafen facility. The affected products include adipic acid, cyclododecanone (CDon), and cyclopentanone (CPon), with the closures set to take effect by 2025. This decision impacts approximately 180 employees at the site.
The initiative is framed as a strategic adjustment aimed at enhancing the profitability of the Ludwigshafen operation amid evolving market dynamics. By concluding these production lines, BASF seeks to address the competitive pressures and align its offerings more closely with market demands.
The phasing out of operations will commence with the discontinuation of CDon and CPon production plants in the first half of 2025, followed by the full closure of the remaining adipic acid production facilities later in the same year. This move concludes an ongoing strategic review of the Ludwigshafen site’s production capabilities, designed to bolster BASF’s competitiveness in a changing market landscape.
The decision to wind down these production activities follows a previous reduction in adipic acid capacity earlier in the year. The continued operation of certain capacities was initially maintained to support the supply chain for CDon and CPon production. BASF has committed to coordinating closely with customers to ensure a smooth transition as it winds down the supply of these materials.
BASF’s decision will inevitably affect its workforce, with around 180 employees facing the reality of these closures. In response, the company has pledged comprehensive support to assist impacted staff in finding new roles within the BASF Group, highlighting its commitment to its workforce during this transition period.
Dr. Katja Scharpwinkel, a member of the Board of Executive Directors, Labour Director of BASF and Head of the Ludwigshafen site, outlined the strategic rationale behind the closures. “These closures are part of the development of a long-term target picture for the transformation of the Ludwigshafen site,” she explained. The decision touches on all stages of production for the three affected materials, each of which plays a critical role in various industrial applications.
CDon serves as a key resource for producing lauryllactam, a precursor to the high-performance plastic polyamide 12 (PA 12). It’s also integral in the synthesis of musk fragrances and UV stabilizers. CPon, on the other hand, is utilized in the creation of pesticides and active pharmaceutical ingredients, semiconductor production, and in the manufacture of special fragrances. Adipic acid has widespread applications, notably in the production of polyamides, polyurethanes, coatings, and adhesives.
As BASF moves forward with these closures, the company is navigating the complex challenges of maintaining competitiveness while adjusting to market shifts. The strategic reevaluation of its Ludwigshafen operations signifies a pivotal moment in its ongoing adaptation to the global chemicals industry’s evolving landscape.
