BASF to Restructure Geismar, Freeport Manufacturing Sites
May 06 2004 - 4:30PM
PR Newswire (US)
BASF to Restructure Geismar, Freeport Manufacturing Sites New
initiatives support ongoing $250 million restructuring program in
North America MOUNT OLIVE, N.J., May 6 /PRNewswire-FirstCall/ --
BASF is launching initiatives to improve the efficiency and
competitiveness of its major North American manufacturing sites in
Geismar, La., and Freeport, Texas. The initiatives target savings
in the range of $30 million to $40 million annually. The
initiatives are a part of the company's ongoing restructuring
program, which was first announced in August 2003 and which targets
savings of at least $250 million annually by 2006. "To be a
world-class competitor, we must continually strive to be a low-cost
manufacturer," said Klaus Peter Loebbe, Chairman and CEO of BASF
Corporation. "Our business and industry are challenged by
overcapacity, high energy costs, high raw material costs, and the
movement of customers to other countries. We are acting to address
these issues and to improve our competitiveness. We are making good
progress on our overall restructuring program and I am confident
that we will exceed our minimum target of $250 million in annual
savings." The initiatives to improve the efficiency and
competitiveness of the Geismar and Freeport sites follow a
comprehensive review of the operations of both sites. As a result,
each of the sites has been charged with identifying specific
process, productivity and technology enhancements in order to
achieve new operating efficiencies. In connection with the
achievement of new efficiencies, the company anticipates a combined
reduction of 550 to 680 positions at the two sites. These
reductions will begin within the next several weeks and will be
substantially completed in 2005. The Geismar site, which currently
has approximately 1,400 employees and contractors, will target
reductions in the range of 400 to 500 positions. The Freeport site,
which currently has approximately 1,000 employees and contractors,
will target reductions in the range of 150 to 180 positions. "Our
challenge is to redefine how we approach manufacturing operations,
not just to reduce staffing. As we do so, we are committed to
maintaining our high standards in the areas of safety, environment
and health. This commitment is non-negotiable," Loebbe said. BASF -
The Chemical Company. We don't make a lot of the products you buy.
We make a lot of the products you buy better(R). BASF Corporation,
headquartered in New Jersey, is the North American affiliate of
BASF AG, Ludwigshafen, Germany. We employ about 11,000 people in
North America and had sales of approximately $9 billion in 2003.
For more information about BASF's North American operations, or to
sign up to receive news releases by e-mail, visit
http://www.basf.com/usa. BASF is the world's leading chemical
company. Our goal is to grow profitably and further increase the
value of our company. We help our customers to be more successful
through intelligent system solutions and high-quality products.
BASF's portfolio ranges from chemicals, plastics, performance
products, agricultural products and fine chemicals to crude oil and
natural gas. Through new technologies we can tap into additional
market opportunities. We conduct our business in accordance with
the principles of sustainable development. In 2003, BASF had sales
of approximately $42 billion and over 87,000 employees worldwide.
Further information on BASF is available on the Internet at
http://www.basf.com/. DATASOURCE: BASF CONTACT: Don McGrath, BASF,
+1-973-426-2850, Web site: http://www.basf.com/usa
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