German chemical, fertiliser, crop protection and seed producer BASF will cut 2,600 jobs or about 2.3% of its global workforce as it battles high production costs, Reuters reported on 24 February.
The job losses were part of plans announced in October to cut annual non-production costs in Europe by €500M. BASF also announced plans to cut another €200M in annual fixed production costs.
“At the heart of BASF's soaring costs are European natural gas prices which rocketed last year after Moscow's invasion of Ukraine [on 24 February],” Reuters wrote.
Although European prices had eased to around €50/megawatt hour from last August's peak of more than €340, they remained above historic averages, according to the report.
Several production lines would be closed at BASF’s largest chemical complex at Ludwigshafen, including one of two ammonia plants there, Reuters wrote. Ammonia is used to produce nitrate fertilisers such as ammonium nitrate (AN), as well as engineering plastics and diesel exhaust cleaning fluid.
When BASF spoke of cutting ammonia production last August, it said farmers could expect a sharp increase in fertiliser costs this year.
At the time, Norwegian fertiliser producer Yara International also announced it was reducing fertiliser production at several plants.
As well as chemical and fertiliser manufacturing, BASF also produces surfactants for personal care, cosmetics, cleaning, detergent and technical applications, including palm- and palm kernel oil-based fractions, oleochemical derivatives and vegetable oil esters. BASF also supplies seed and crop protection products for farmers including canola, soyabean, rice, cotton and wheat seeds and herbicides, insecticides and fungicides.
