LUDWIGSHAFEN (dpa-AFX) - The chemical company BASF is closing further production plants due to cost pressure. Production of the active ingredient glufosinate ammonium (GA) at the Knapsack and Frankfurt sites will be discontinued by the end of the year, the DAX-listed company announced in Ludwigshafen. GA production in Frankfurt will end in 2025. "Both production facilities will then be shut down." The plan is to leave both sites after all activities, including dismantling, have been completed, a spokesperson explained.

The restructuring will affect a total of around 300 jobs at the two chemical parks in Hürth (NRW) and in Frankfurt's Hochst district. The jobs will initially be retained until the end of 2025 and "will then be gradually reduced in consultation with employee representatives", BASF explained.

BASF cited increasing competition from generics manufacturers, alternative technologies and high energy and raw material costs as the reasons. Although costs had been reduced in both production plants, the volume and profitability development was insufficient. In future, the company will source the active ingredient from third-party suppliers.

Next restructuring at BASF

The active ingredient glufosinate-ammonium is one of the most widely used broad-spectrum herbicides and controls weeds in many crops worldwide. However, it remains a key component in BASF's herbicide portfolio. At the same time, the company is focusing on the development of next-generation GA solutions.

BASF had already announced the closure of several chemical plants in February 2023 due to high energy prices, including one for ammonia and the plastic precursor TDI. The company has announced several cost-cutting programs and the loss of thousands of jobs. The cuts will also affect the main plant in Ludwigshafen. The company's largest production site is to be reorganized /als/wo/DP/men