BASF will close two glyphosate factories

BASF has stated that due to economic reasons, it plans to cease production of glyphosate active ingredients at its Knapsack and Frankfurt factories in Germany by the end of 2024. The glufosinate preparations at the Frankfurt factory will be discontinued in 2025, and subsequently both factories will be closed.

BASF stated that its production of glyphosate is increasingly affected by factors such as generic drug manufacturers, alternative technologies, and high energy and raw material costs due to the closure of the factory. Although both factories have implemented measures to reduce production costs, the improvement in their output and profitability is still not satisfactory.

BASF stated that the planned closure of the factory involves approximately 300 positions that will be retained until the end of 2025, and will then negotiate with employee representatives to gradually lay off employees, as well as assist employees in finding future employment opportunities.

Glyphosate ammonium is an important component of BASF's global herbicide product portfolio. BASF has revealed that it is currently restructuring its production network for glyphosate and will procure active ingredients from third parties to ensure its long-term competitiveness and profitability in the glyphosate market. BASF Executive Board member Michael Heinz stated, "We remain committed to providing customers with high-quality glufosinate solutions. At the same time, we will continue to focus on developing the next generation of glufosinate solutions

Due to significant weakness in earnings in the European region, BASF announced the launch of a significant cost reduction plan in October 2022; In February 2023, BASF launched a series of specific cost reduction measures, including adjusting the production structure of its Ludwigshafen plant in Germany, such as closing the caprolactam unit, one of the two synthetic ammonia units and related by-product facilities, cyclohexanol and cyclohexanone units, sodium carbonate units, TDI and precursor units for DNT and TDA, and reducing adipic acid production capacity. About 700 production related positions will be affected. In February of this year, BASF announced additional cost reduction measures at its Ludwigshafen site, which will lead to further layoffs.