BASF Suddenly Cancels

Recently, BASF and Yara International have jointly decided to terminate the project to develop a low-carbon ammonia production facility equipped with carbon capture and storage technology in the Gulf Coast region of the United States.

In June 2023, the two parties announced a collaboration and have since been selecting a site to build a plant along the U.S. Gulf Coast. BASF and Yara are long-term partners and are currently jointly operating a world-class ammonia plant at BASF's Freeport, Texas facility. Additionally, BASF produces ammonia in Ludwigshafen, Germany, and Antwerp, Belgium. Yara operates the world's largest ammonia production system, with production facilities located across Europe, the Americas, and Asia.

BASF cited “purely economic considerations” as the reason for the divestment. The company stated that it will focus its resources on projects with higher value-added potential. As part of a large-scale cost reduction plan, BASF has already significantly cut its capital budget for the coming years.

In September 2024, BASF released its new strategy "Winning Ways," dividing its businesses into "core businesses" and "autonomous businesses." In 2024, BASF Group consists of 11 business segments. After the reorganization of the Catalysts division in January 2025, it will comprise 12 business segments, which are grouped into the following six major business areas:

Specifically, the surface treatment technology business domain has been adjusted into three major "independent businesses": the Coating Business Division remains unchanged, while two independent business divisions—Battery Materials, and Environmental Catalysts and Metal Solutions—have been established. The chemical and refining catalyst businesses, originally part of the Catalyst Business Division, have been transferred to the Specialty Chemicals Business Division under the Industrial Solutions business domain.

The EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization), excluding special items, for each business in 2024 and 2023 is as follows:

BASF's "independent business" segment has undergone several adjustment measures, specifically: the Environmental Catalysts and Metal Solutions division was spun off in 2023.

The Battery Materials Division: Operating in a rapidly growing environment characterized by high market and technological risks. To mitigate these risks, it is focusing on leveraging existing capacity and adjusting expansion plans. In 2024, BASF abandoned its initial plan to independently produce nickel and cobalt; the battery materials plant in Finland had to implement indefinite layoffs due to the revocation of a temporary permit; the plan to build a nickel-cobalt production facility in Indonesia was halted; similarly, BASF also withdrew its investment in the lithium mining business in Chile.

The Coatings Division: BASF's decorative coatings business in Brazil was sold to Sherwin-Williams for $1.15 billion in February 2025. In May, BASF Europe initiated the previously announced sale plan of its coatings business, with a potential transaction value of approximately 6 billion euros. According to related reports, the company has sent information about the business to potential bidders.

The Agricultural Solutions division plans to complete legal separation by 2027 and introduce an independent enterprise resource planning system, with an IPO planned for 2027, at which time BASF may sell its minority stake in the pesticide and seed manufacturer.

In addition to the above strategic plans for independent businesses, several other business lines have also been reduced.

In June 2024, BASF sold its bioenergy enzymes business to the Raman Group; in July, BASF sold its additive manufacturing business to the Forward AM leadership team and established Forward AM Technologies GmbH; in the same month, BASF announced the cessation of production of the active ingredient glufosinate ammonium at its Knapsack and Frankfurt plants in Germany; in August, BASF decided to stop production related to adipic acid, cyclododecanone, and cyclopentanone at its Ludwigshafen site in Germany; in September, BASF sold Wintershall Dea's exploration and production business (excluding Russian-related assets) to Harbour Energy, completing the sale in August 2025 and receiving $1.56 billion; in November, BASF completed the transfer of its mining flocculants business to Solenis; in December, BASF sold its Food and Health Performance Ingredients business (including the Illertissen production site in Germany) to the Louis Dreyfus Company (LDC). In July 2025, BASF completed the sale of its Styrodur® business to BACHL.

The report also states that it plans to expand its business in China, India, and five ASEAN countries (namely Indonesia, Malaysia, Singapore, Thailand, and Vietnam) by strengthening local organizational structures, production operations, and R&D activities. It is expected that by 2035, chemical growth in these seven countries will account for nearly 80% of global growth.

In terms of performance, BASF's total sales in 2024 amounted to 65.3 billion euros, a year-on-year decrease of 5.2%. EBITDA was 6.7 billion euros, down 6.9% year-on-year. Net income reached 1.3 billion euros, significantly exceeding the 225 million euros in 2023. In the first quarter of 2025, sales were 17.4 billion euros, a year-on-year decrease of 0.9%; EBITDA was 2.18 billion euros, down 18% year-on-year. In the second quarter of 2025, sales were 15.77 billion euros, a year-on-year decrease of 2.1%; EBITDA was 1.77 billion euros, down 9.7% year-on-year; net income was 80 million euros, a year-on-year decrease of 81.4%.

In 2024, BASF's sales in the Greater China region are approximately 8.6 billion euros, compared to 9.4 billion euros in 2023. By the end of 2024, BASF's cumulative investment in the Greater China region will exceed 13 billion euros (with joint investments with partners totaling approximately 17 billion euros).

It is worth mentioning that in the first half of 2025, BASF's Coatings division signed agreements with SAIC-GM-Wuling, Li Auto, and NIO, among others, and successfully expanded the polyester and polyurethane resin capacity at its Caojing plant in Shanghai on March 24th.