Packaging looks safe in massive BASF cutbacks

Materials giant BASF's packaging operations look likely to be spared tough cutbacks after the group announced temporary shutdowns for around a quarter of its worldwide production capacity.
The German firm, which has more than 95,000 staff worldwide, yesterday said that it would temporarily close 80 factories and reduce production at 100 more due to plummeting demand from the automotive, construction and textiles sectors.

Around 20,000 staff are to be asked to take annual leave or will be put on flexible working patterns to deal with the cutbacks.

However, a spokesman for the firm told Packaging News that neither redundancies nor permanent plant closures were planned at present.

The firm’s packaging division, meanwhile, which produces a range of materials such as adhesives, rigid and flexible plastics, paper chemicals and dyes, looks unlikely to be severely affected by the shutdowns.

The spokesman said: "Packaging is an area where there’s weakening demand, but it’s not the driving force here. The focus of these changes is very much on the automotive, construction and textiles industries."

Elsewhere in the statement, BASF revealed that it would not match last year's profit levels in the current financial year. BASF chairman Jürgen Hambrecht said: "How the coming year will develop is difficult to foresee. BASF is preparing for tough times."

News of the cutbacks comes just two weeks after BASF announced 1000 job losses and poor third-quarter results.

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( Source: PackagingNews )