18 March 2003 15:28 [Source: ICIS news]
LUDWIGSHAFEN, Germany (CNI)--BASF has achieved Euro700m ($753m) of its annual cost savings target of Euro1bn by the end of 2003 and will complete the programme this year through planned plant closures, the company said here on Tuesday.
Jurgen Hambrecht, member of the board of executive directors, said BASF would achieve the remaining Euro300m of savings this year but would not commit the company to exceeding the target. He said more plant closures would be necessary but would not give more information on locations and dates.
This cost cutting programme was first announced in 2001 and targetted savings of Euro1bn by the end of 2003.
There was also a separate cost cutting programme, which involved the loss of 4000 jobs by the end of 2002 through plant closures and divestments. Hambrecht, who was speaking at the company's 2002 financial results conference, said the jobs reduction target had been achieved.
He said BASF’s other cost-saving programme, at its Ludwigshafen site, was on track to begin showing results by June 2003. The programme is targetting Euro450m of cost-savings by 2005.
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