BASF Idles Capacities BASF to Idle Capacity for Latex and Paper Chemicals
BASF restructures its problem child paper chemicals: The German chemicals giant plans to lay off production capacities of about 120 000 tons. 250 positions will be reduced until 2015, the company states...
Ludwigshafen/Germany – With weak market demand for paper chemical, BASF plans to bundle its latex manufacturing capacities in Ludwigshafen, Germany, Pischelsdorf, Austria and Hamina, Finland. Additionally, the company is evaluating strategic options for its alkyl ketene dimer (AKD) business in Europe and North America. Due to the planned measures approximately 250 positions in production, marketing, sales and administration will be reduced by end of 2015.
Despite these cuts in the traditional paper chemicals business, BASF will continue its newly established Center for Sustainable Paper Packaging. “We aim to grow our new business line of sustainable solutions for packaging manufacturers. In this area, licensing of intellectual property, development partnerships and smaller acquisitions are possible,” said Dr. Uwe Liebelt, President of the company's Paper Chemicals division.
Recently, BASF signed an agreement with the French company BT3 technologies to evaluate the joint development of an alternative to wax in corrugated packaging board in order to facilitate recycling.“Altogether these measures will position the paper chemicals business to be more responsive to market and customer needs while showing significantly improved profitability,” continued Liebelt.