BASF CFO Elvermann draws positive interim balance 100 days after opening of China plant

Ludwigshafen site under pressure

Unlike the new site in Zhanjiang, the flagship plant in Ludwigshafen continues to develop weakly. "It is a longer road back into the black," Elvermann conceded. The group wants to return the world's largest site to profitability.

At the end of 2024, BASF still had 33,370 employees in Ludwigshafen. That number has since fallen to around 30,000 full-time positions and will continue to decline in the course of rising productivity. Asked about the mood at the site, Elvermann said: "Right now I'm experiencing a great deal of solidarity and team spirit." The site will continue to shrink.

Of the annual savings of 2.3 billion euros planned by the end of 2026, around 1.9 billion euros have already been achieved, Elvermann said. This puts the group well above the original interim target of its savings program. Employees must nevertheless prepare for further job cuts.

Savings program progressing faster than planned

Elvermann pointed out that the investments in the new integrated site in China are part of a broader strategy. "Ultimately, the market is decisive for where we invest," the CFO said. The competitiveness of Asian manufacturers, particularly in India and China, has increased significantly in recent years.

The situation at the Ludwigshafen site underscores the balancing act the group faces: while the company is investing billions in Asia, jobs must be cut and plants shut down at home. The Zhanjiang site is to process naphtha in the future and position BASF in the region as a low-cost producer.

Analysts were predominantly positive on the trading day. The BASF share rose on XETRA at times by 0.29 percent to 47.46 euros. Earlier, Goldman Sachs had confirmed its "Buy" rating, while JP Morgan rated the stock "Underweight" and Bernstein Research set it at "Outperform."

Analysts divided, share slightly in positive territory

Elvermann did not give a specific forecast as to when the core workforce in Ludwigshafen will return to the black. He merely referred to the existing restructuring plan and the need for further productivity increases. Industry observers therefore interpret the interim balance after 100 days in Zhanjiang as a signal of the strategic shift.

Overall, the interim balance shows that the group is on track with its largest project abroad, while the home site remains under sustained pressure. The coming quarters are to show whether the savings and the new capacities in Asia will actually contribute to a sustainable recovery.

A statement from the employee representation on the latest savings measures was not initially available on the trading day. Elvermann also did not comment on concrete figures regarding planned job cuts in Ludwigshafen beyond the targets already communicated.