BASF PharmaChemikalien to implement restructuring measures at Minden site

Workforce reduction of about 200 full-time jobs

01-Sep-2006

BASF PharmaChemikalien GmbH & Co. KG is set to reorganize and downscale its Minden production site as a means of countering the greatly intensified competition involving a wide variety of pharmaceutical active ingredients. The company aims to restore the competitiveness of the site. The restructuring program comprises measures for reducing costs, increasing efficiency and ensuring flexibility, as well as a reduction in the workforce involving about 200 full-time jobs. This will happen mainly through dismissal due to operational reasons, and will be completed by mid-2007. In this context, the outsourcing of service functions is also being considered.

"The decision to streamline the workforce was not easy for us. However, it is necessary if we are to make the site profitable again and safeguard the remaining jobs", said Dr. Roland Minges, Managing Director of BASF PharmaChemikalien GmbH & Co. KG, which operates the production plants in Minden. "We shall immediately start discussions with the employee representatives aimed at reaching a compromise and devising a redundancy plan. We shall also examine employment options at neighboring BASF Group companies for members of staff leaving."

According to the company, BASF is responding at the Minden site to the greatly intensified competition involving pharmaceutical active ingredients. The increased cost pressure by suppliers from Asia has meanwhile led to an unsustainable situation in earnings. This is aggravated by a significant decline in demand for essential active ingredients produced at the site. Restrictions in marketing pseudoephedrine in the world's largest market - the USA - as well as huge volatility in the demand for caffeine among the beverage sector, are making it impossible to operate the plants profitably in Minden and employ a workforce of the current size. BASF is counteracting these changes in the market situation with restructuring measures at the Minden site. It will focus its attention in the future on the growth areas of pharmaceutical excipients and custom synthesis in the Pharma Solutions business segment.

https://www.chemeurope.com/en/news/57509/basf-pharmachemikalien-to-implement-restructuring-measures-at-minden-site.html