BASF AG, Germany, reports that it is repositioning its global pigments business following its acquisition of Ciba. After an in-depth analysis of the combined operations, the company says it will eliminate specific products and "adapt production capacities to market developments."
Some 500 of the combined company's 2,900 jobs in global pigment production will be redundant, and thus eliminated. These job reductions, which mainly concern azo pigments and phthalocyanines, will begin this year and are expected to be completed by 2013. BASF currently operates 22 production sites for pigments worldwide. "We will close individual production plants at six sites in North and South America as well as in Europe. At six other sites in Asia and Europe, we will expand existing capacities or make better use of them," said Markus Kramer, president of BASF's Dispersions and Pigments division.
In Europe, about 320 positions will be cut by 2013. This will mainly affect the sites in Paisley, G.B., and in Grenzach, Germany. About 90 positions will be cut at the South American site in Guaratinguetá, Brazil. Redundancies at the company's U.S. sites in Louisville, Ky., and Elyria, Ohio, will total about 80 positions.
"By streamlining our portfolio we will mainly eliminate overlaps within our combined portfolio. At the same time we are reducing overcapacities," said Andreas Türk, group VP of the BASF unit Global Restructuring Management Pigments. All sites that are not directly involved in the production consolidation process will undergo regular checks establishing optimization potential.
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