BASF to close former Ciba sites and cut jobs as part of restructuring plan
Following its acquisition of Ciba Holding in April 2009, chemicals giant BASF today announced its finalised integration plans for the company, which could include the loss of around 3,700 jobs.
Following its acquisition of Ciba Holding in April 2009, chemicals giant BASF today announced its finalised integration plans for the company, which could include the loss of around 3,700 jobs.
Under the plans, former Ciba businesses will be integrated into operating divisions under BASF’s performance products umbrella, a move that is expected to entail cash costs of approximately €550m but which BASF estimates will generate synergies of at least €400m per year from 2012.
The restructuring plans include a reduction of approximately 3,700 positions by 2013, many of which will be eliminated by 2010. BASF has also said that it is reviewing options, which include restructuring, sale or closure, for 23 of the 55 former Ciba production sites worldwide, adding that decisions will be made by Q1 2010. The remaining 32 sites will be optimised as part of BASF’s production network or restructured. Ciba’s home & personal care business is to be integrated into the existing structure of BASF’s care chemicals division.
Chairman, Dr Jurgen Hambrecht, says that BASF aims to implement these measures in a socially responsible manner and is in talks with local employee representatives. In addition, it intends to retain a strong presence in Ciba’s hometown of Basel, Switzerland.
