The chemical company BASF is launching another savings program due to weak demand in Europe. The DAX group announced that additional costs of one billion euros should be saved annually at the Ludwigshafen site by 2026.

Fixed costs should be reduced by increasing efficiency and production capacities should be adjusted to market requirements. “Unfortunately, the program will also entail further job cuts,” said company boss Martin Brudermüller.

The BASF management had already announced an austerity program in 2022 due to worsening business and more difficult conditions in Europe, especially due to sharp increases in gas prices. This is intended to reduce annual costs by a total of 1.1 billion euros by the end of 2026. There are also further measures with which BASF wants to reduce annual costs by 500 million euros from the end of 2026. The measures already include the reduction of jobs and the closure of several chemical plants.