BASF said it is repositioning its global pigments business. Following the 2009 Ciba acquisition, the chemical company now has the broadest product portfolio worldwide as well as a unique range of technologies and production know-how when it comes to pigments.
After an in-depth analysis of the combined operations, the company said it will eliminate specific products and adapt production capacities to market developments. As a consequence, approximately 500 of the current 2,900 jobs in the global pigment production will be redundant.
The measures, which mainly concern azo pigments and phthalocyanines, will begin this year and are expected to be completed by 2013. BASF currently operates 22 production sites for pigments worldwide.
"At six sites in North and South America as well as in Europe we will close individual production plants. At six other sites in Asia and Europe, we will expand existing capacities or make better use of them,” said Dr. Markus Kramer, president of BASF’s Dispersions & Pigments division.
In Europe, about 320 positions will be cut by 2013. This will mainly affect the sites in Paisley, Great Britain, and in Grenzach, Germany. About 90 positions will be cut at the South American site in Guaratinguetá, Brazil. The redundancies at our North American sites in Louisville, Kentucky, and Elyria, Ohio, will total about 80 positions.
"By streamlining our portfolio we will mainly eliminate overlaps within our combined portfolio. At the same time we are reducing overcapacities,” said Andreas Türk, Group Vice President of the BASF unit Global Restructuring Management Pigments. All sites that are not directly involved in the production consolidation process will undergo regular checks establishing optimization potential.
