Layoffs, Divestments, Plant Closures While Pouring Billions: BASF Undergoes Major Transformation!

Recently, BASF has completed two key actions: first, it has finalized the divestment of its oil and gas business, involving the adjustment of approximately 800 employees and obtaining cash flow exceeding 10 billion RMB; second, the company signed a memorandum of understanding with Fourier Intelligence to jointly develop new material solutions for next-generation humanoid robots.

In the past year, BASF has successively abandoned and shut down multiple projects at its production sites in Germany, China, and other locations, with the largest number and scale of project closures occurring at its production sites in Germany.

1. In 2024, the Knapsack and Frankfurt glufosinate projects in Germany will be shut down, with the production of glufosinate active ingredients at the Frankfurt site ceasing simultaneously. The production of glufosinate formulations is planned to be discontinued in 2025, followed by the complete closure of the factory.

In Ludwigshafen, Germany, the production facilities for adipic acid, cyclododecanone, and cyclopentanone will be gradually shut down in 2025, with the cyclododecanone and cyclopentanone facilities ceasing operations in the first half of 2025, and the adipic acid facility shutting down within 2025.

3. Other shutdown plans for facilities in Ludwigshafen, Germany include the TDI unit and its supporting DNT unit to be shut down in 2024, as well as a synthetic ammonia unit and the caprolactam production chain planned to be shut down in 2025, involving a total capacity of approximately 300,000 tons per year.

BASF will withdraw from the Xinjiang BDO market, completing the sale of its shares by April 2025, and will exit BASF Markor Chemical (Xinjiang) Co., Ltd. and Markor Meiou Chemical (Xinjiang) Co., Ltd.

On August 15, 2025, BASF announced that it had successfully sold its Exploration & Production (E&P) business in Wintershall Dea to Harbour Energy. The transaction is expected to affect approximately 800 jobs.

On one hand, Harbour Energy, in which BASF holds a stake, will continue to operate the former Wintershall Dea business, preserving CCS-related technology. On the other hand, BASF had planned to gradually exit the oil and gas business years ago, and the funds obtained from this sale will be used to support its major investments in the coming years, including the Zhanjiang integrated base and the expansion of its new energy business.

Considering the current global chemical production overcapacity, especially the intense competition in the Chinese market, BASF is expected to adopt a more cautious strategy in advancing large projects such as the Zhanjiang base. The investment in this base amounts to 10 billion euros and it is currently in the commissioning stage, with the first batch of butyl acrylate products delivered on August 17. However, initial profitability might face pressure.

Since 2022, BASF has been implementing a structural adjustment plan aimed at cost reduction and efficiency enhancement, including optimizing production costs in Europe and adjusting the production structure at the Ludwigshafen site. The company's CEO, Martin Brudermüller, stated at the second quarter 2025 financial report meeting that more production facilities at this site may still be shut down in the future.

In the past year, BASF has added the following projects worldwide:

The semiconductor-grade sulfuric acid production facility in Ludwigshafen, Germany, was announced for investment in April 2025, with plans to commence production by 2027. The total investment amounts to several tens of millions of euros. The product is semiconductor-grade sulfuric acid with a purity of 99.9999%, used for cleaning and etching processes in chip manufacturing.

The battery recycling metal refining pilot facility in Schwarzheide, Germany, which started in April 2024, has now entered the process optimization phase. This project aims to extract lithium, nickel, cobalt, manganese, and other metals from discarded lithium batteries, with a target recovery rate of over 95%. In the future, it will be complemented by a commercial refining facility.

The Ludwigshafen green hydrogen project in Germany will launch a 54 MW proton exchange membrane electrolyzer in March 2025, with an annual production of 8,000 tons of green hydrogen, and a total investment of 124.3 million euros.

▶▶The core facilities of the integrated base in Zhanjiang, Guangdong, China are under comprehensive construction. The thermoplastic polyurethane (TPU) unit is scheduled to start operations in January 2024, marking the completion of the first batch of units. The core steam cracker unit, with a capacity of 1 million tons of ethylene per year, along with the downstream petrochemical industry chain, is planned to be fully operational by the end of 2025. The total investment exceeds 10 billion euros, making it BASF's third-largest production base globally.

BASF China Nanjing additives plant expansion project will commence in June 2024, with plans to start production by the end of 2025. The total investment is 200 million RMB, including an annual production capacity of 4,800 tons of high-performance dispersants, which are used in coatings, inks, electronic chemicals, and other fields.

▶▶The Chongqing MDI capacity expansion project will enter trial operation in December 2024, increasing production capacity from 400,000 tons/year to 530,000 tons/year. The products include MDI, polyurethane foam, coatings, etc., with supporting CCUS technology.

▶▶The expansion of superabsorbent polymer (SAP) capacity in Texas, USA, is scheduled for completion in October 2024, with a 20% increase in production capacity and a total investment of $19.2 million. The main product is SAP, used in diapers, sanitary napkins, and other hygiene products, aimed at optimizing absorption speed and swelling performance.

The BASF Shanshan all-solid-state battery cathode material pilot project will be completed in August 2024 and enter mass production in 2025. It will be used for high energy density batteries and has been certified by CATL.

BASF's Schwarzheide site in Germany has established Europe's first integrated "production-recycling" center, aiming to meet 30% of Europe's battery material demand with recycled metals by 2030. This initiative aims to further advance BASF's market share in the recycling sector.

On August 18, BASF signed a memorandum of understanding with Fourier Intelligence, aiming to collaboratively develop new material solutions for the next generation of humanoid robots. The focus includes the application of engineering plastics, polyurethane, and thermoplastic polyurethane in the structure and components of robots.

The rapid development of humanoid robots in recent years has driven a significant increase in the demand for related new materials. These materials need to balance characteristics such as lightweight, high strength, and wear resistance. As early as 2017, BASF collaborated with Shanghai Siasun to develop a collaborative robot, using materials such as Elastollan® TPU, Ultramid® glass fiber reinforced PA, and 3D printed PA-6.