BASF Announces Cost Cuts and Silicates Business Sale to PQ by 2026
BASF Implements Major Cost-Cutting Measures and Strategic Divestment
Overview of BASF's Cost-Cutting Initiative
May 20 (Reuters) - German chemical group BASF is pushing more cost-cutting and on Wednesday also announced it had signed an agreement to sell its silicates business to U.S. rival PQ.
Targeted Reductions in Operating Costs
* BASF to operate core businesses at up to 20% lower net cash fixed costs by 2029, statement says
Potential Impact on Workforce
* This is also likely to lead to job cuts, Chief Executive Markus Kamieth tells the Handelsblatt newspaper
* "It is one of the largest optimization programmes for BASF, a new operating system for the company," he said. "It will lead to a new core business with fewer employees"
Sale of Silicates Business to PQ
Details of the Transaction
* BASF to sell silicates business to PQ, which is headquarted in Malvern, Pennsylvania, a statement says
* The transaction is expected to be completed in H2 2026
* The parties have agreed not to disclose the financial details of the transaction
Assets Involved in the Sale
* PQ will acquire the sodium silicates business and the associated activities at BASF’s Duesseldorf/Holthausen site
(Writing by Matthias WilliamsEditing by Madeline Chambers)
