BASF is taking measures to avoid the creation of overcapacities as a result of a massive decline in demand. The company announced November 19 that it is temporarily shutting down around 80 plants worldwide. In addition, BASF is reducing production at approximately 100 plants. This was already announced for polystyrene and caprolactam. Scheduled maintenance work is being brought forward.
“We already drew attention to the difficult economic situation at the end of October. Since then, customer demand in key markets has declined significantly,” said Dr. Jürgen Hambrecht, chairman of the board of executive directors of BASF SE. “In particular, customers in the automotive industry have canceled orders at short notice.”
In addition, sales volumes are being negatively impacted by increased reduction of inventory by customers and a lack of credit in customer industries.
“In 2008, BASF will therefore not achieve the previous year’s excellent EBIT before special items. How the coming year will develop is difficult to foresee. BASF is preparing for tough times,” said Hambrecht.
Poster Comment:
Bad News for lots of workers all over the world.