As a result of a massive decline in demand, global chemical giant BASF is temporarily shutting down around 80 plants worldwide and reducing production at approximately 100 plants.
‘We drew attention to the difficult economic situation at the end of October.
‘Since then, customer demand in key markets has declined significantly,’ said Dr Jürgen Hambrecht, chairman of the board of executive directors of BASF.
‘In particular, customers in the automotive industry have cancelled orders at short notice,’ he added.
In addition, the company says that its sales volumes are being negatively impacted by reduction of inventory by its customers, who are also experiencing a lack of credit.
‘How the coming year will develop is difficult to foresee.
‘BASF is preparing for tough times,’ said Hambrecht.
Worldwide, approximately 20,000 BASF employees will be affected by the production cuts.