BASF drives forward structural adjustments at the Ludwigshafen site

Closure of the production plants for adipic acid, CDon and CPon

02-Sep-2024

Measures aim to improve profitability of the Ludwigshafen site.

BASF SE

BASF will end the production of adipic acid, cyclododecanone (CDon) and cyclopentanone (CPon) at the Ludwigshafen site. The production plant for CDon and CPon will be shut down in the first half of 2025 and the remaining adipic acid production in Ludwigshafen will be closed in the course of 2025. The company has taken this decision as part of the ongoing strategic review of its production setup at the Ludwigshafen site to ensure competitiveness under changing market conditions.

The production capacity for adipic acid had already been reduced as part of the adjustments to the Verbund structures at the Ludwigshafen site announced in February 2023. The remaining adipic acid production was partially continued to ensure supplies of raw materials for the production of CDon and CPon. BASF will cease deliveries of CDon and CPon in close coordination with customers.

Approximately 180 employees will be affected by the plant closures. BASF will support affected employees in finding new employment opportunities within the BASF Group.

“BASF is taking this step to ensure profitability across the Verbund value chains by adjusting production structures to changed market conditions. We will be in close contact with our customers to minimize the impact of the closures,” explains Dr. Stephan Kothrade, Member of the Board of Executive Directors and Chief Technology Officer of BASF SE. “We will continue to produce adipic acid in Onsan, South Korea, as well as in our joint venture in Chalampé, France.”

“These closures are part of the development of a long-term target picture for the transformation of the Ludwigshafen site,” says Dr. Katja Scharpwinkel, Member of the Board of Executive Directors, Industrial Relations Director of BASF SE and Director of the Ludwigshafen Site. “We support our affected colleagues to quickly find new opportunities in BASF.”

CDon is the main raw material to produce lauryl lactam, a precursor for the high-performance plastic polyamide 12 (PA 12). CDon is also used in the synthesis of musk fragrances and UV stabilizers. CPon is used as a building block for synthesizing crop protection agents and active pharmaceutical ingredients, as a solvent in the manufacture of semiconductors, and as a precursor to producing special fragrances. Adipic acid is used to produce polyamides, polyurethanes, coatings, and adhesives, among other things.

https://www.chemeurope.com/en/news/1184319/basf-drives-forward-structural-adjustments-at-the-ludwigshafen-site.html