LONDON (ICIS)--BASF is facing increasing difficulties in the supply chain due to coronavirus restrictions but all plants at its main production site in Ludwigshafen are operating, the German chemicals major said to ICIS on Friday.
BASF has applied for short-time work at its sites in Munster and Wurzburg, also in Germany, which mostly supply the automotive industry, a company spokesperson said.
Short-term work - or Kurzarbeit - is the policy under which workers agree or are forced to accept a reduction in working time and pay.
“A sharp decline in demand cannot be ruled out in other industries either,” it added.
“We continuously adapt our production to the demand of our customers.”
BASF said it is seeing good demand for products important for healthcare and essential services for the general population.
However, it said some of its end customer are being particularly affected by the coronavirus restrictions.
“BASF in Ludwigshafen currently has no short-time work” arrangements, the spokesperson added.
“However, due to the enormous dynamics of the situation, we are closely monitoring the situation and undertaking the necessary preparations should anything change.”
The spokesperson added that about half of BASF employees based in Ludwigshafen are working from home.
For those who have to attend on-site work shifts, the company has implemented special hygiene and clearance rules to keep all production plants in operation.
The company said it is in close contact with its customers, suppliers and logistics service providers “to find practicable solutions depending on the situation" and to maintain the supply of its customers "as far as possible", even as difficulties increase in the supply chain.