The German chemical company BASF is launching another savings program due to weak demand in Europe. The DAX Group announced on Friday that one billion euros in additional costs must be saved annually at the Ludwigshafen location by 2026.
Fixed costs must be reduced by increasing efficiency and production capacities must be adapted to market demands. “Unfortunately, the program will also result in further job losses,” says company boss Martin Brudermüller.
BASF management had already announced a cost-cutting program in 2022 due to deteriorating business and more difficult conditions in Europe, mainly due to sharp increases in gas prices. This should reduce annual costs by a total of 1.1 billion euros by the end of 2026. In addition, there are other measures with which BASF wants to reduce annual costs by 500 million euros from the end of 2026. The measures already include job losses and the closure of several chemical factories. (sda/awp/dpa)
Soource :Watson
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