23 November 2004 14:09 [Source: ICIS news]
New capital investments and modernisation at the German company’s largest site as part of this Euro6.0bn programme will be announced in the coming years, a spokesman said.
BASF is also planning to spend Euro700m on research and development (R&D) of modern processes and products over the next five years.
The announcement was made as an agreement defining the workforce size at Ludwigshafen was signed between management and employee representatives.
Under the agreement, the number of employees of BASF will be reduced to approximately 32 000 by the end of 2007, down from today’s 35 604. BASF has promised enforced redundancies will be avoided in the future.
The target value and avoidance of enforced redundancies will continue to apply until 2010, it said.
However, BASF vice chairman Eggert Voscherau warned: “The precondition for this agreement is that the site is not impacted by economic factors or negative circumstances that endanger BASF’s competitiveness to such an extent that we have to respond with specific structural measures.” Therefore agreement will be reviewed every year, he added.
A cost saving programme designed to reduce costs permanently by Euro450m by mid-2005 was launched two years ago. Savings of Euro350m have so far been identified.
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