BASF cuts polystyrene output with plant closure

The world’s biggest chemicals company is to permanently shut a plant at its Ludwigshafen complex, reducing its total output by 80,000 tonnes/year to 540,000 tonnes/year.

The company blamed a decrease in demand for polystyrene for the decision to dismantle the plant, which has been out of operation since mid-April. BASF said that staff from the plant to transfer to other areas of the group.

News of the closure comes amid ongoing attempts by BASF to sell its styrenics business. It has been trying to find a buyer for the division for more than two years.

It also comes after a number of announcements in recent months over cutbacks across the BASF group to deal with the downturn.

The company has already put more than 6,000 staff on short time, while last November the group announced plans to close around 80 factories across the world. 

Joachim Steu, head of BASF’s styrenics business, said the company was “working intensively” to restructure the styrenics operation 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,” he said.

The business that is up for sale has around 1,600 employees and turnover of around EUR 3bn.

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