BASF says plant utilization rates at Ludwigshafen site have improved
Improved Utilization Rates Amid Global Supply Disruptions
Frankfurt, July 29 (Reuters) - German chemical maker BASF said on Wednesday that plant utilization rates at its largest chemical complex in Ludwigshafen have improved because of supply disruptions caused by the Middle East conflict.
Impact of Middle East Conflict on Supply and Pricing
Tighter supply conditions linked to the war in Iran, with major disruptions at the vital Strait of Hormuz shipping lane, have supported pricing and provided some breathing room for Europe's chemicals sector.
Challenges for Asian Rivals
BASF's Asian rivals have been hobbled by a blocked Strait of Hormuz. But that is offering only a temporary respite from years of weak European demand, global overcapacity and growing competition from Asia.
Restructuring and Workforce Changes at Ludwigshafen
Staff Reductions
Following several quarters of restructuring and cutbacks at BASF, the group said that full-time staff numbers at its chemical complex in Ludwigshafen have dropped below 30,000 for the first time since 1954.
Financial Performance and Outlook
Confirmation of Preliminary Results
BASF also confirmed recently published preliminary results on Wednesday.
Raised Earnings Outlook
Second Quarter Results
In an unscheduled release earlier this month, the company raised its 2026 earnings outlook and reported better-than-expected results for the second quarter.
(Reporting by Patricia Weiss, Writing by Ludwig Burger, Editing by Linda Pasquini)
