Chemicals industry reacts to tough times21 November 2008
BASF have reduced their profit forecast and will cut production because of a ‘massive' fall in demand. They plan to suspend output at about 80 plants and cut production at 100 more, a move that will affect about 20,000 workers worldwide.
BASF have scrapped their target of reaching last year's annual profits, saying they were preparing for ‘tough times ahead'. ‘In particular, customers in the automotive industry have cancelled orders on short notice', BASF said in a statement. The shutdowns and slowdown have already begun and will extend into January. Workers are being encouraged to take vacation time and reduce their overtime. The company has 46 sites in the United States. Dow Chemical, one of America's biggest chemicals companies, are to cut 1,000 jobs and shut plants, in an effort to cut costs. The firm, one of America's largest chemical companies, has been hit by rising costs in the past year. Dow said it would leave the automotive sealers business in North America, Asia and Latin America and ‘explore strategic options' in Europe.