BASF Layoffs 20 Thousand, Closes 80 Factories And Says Investment In China Remains Unchanged
BASF (BASF), the world's largest chemical company, said on Wednesday that the company will temporarily shut down 80 factories around the world due to a sharp reduction in demand from automobiles, construction and textile industries, and about 100 plants will cut production. According to reports, Basf Inc will shut down or reduce production plants are mainly located in Germany, Belgium, the United States and some parts of Asia, it is estimated that this initiative will affect twenty thousand employees, accounting for 1/5 of the total number of employees. In addition, the company's cost reduction plan also includes reducing overtime and working hours.
巴斯夫嚴重受挫
According to BASF's statement, DanielPepitone, a spokesman for the company, said the 40 factories in the company's headquarters would be closed, while the number of factories in North America and Asia would reach 10 and 15, as well as factories in emerging markets such as Malaysia. BASF's plan to reduce production is just a microcosm of the global industrial slump. At least four European chemical companies have said they will scale back to deal with the impact of the financial crisis, except for BASF.
By lowering the 2008 earnings forecast, the company abandoned the previous target of 7 billion 610 million euros ($9 billion 600 million) in 2008. Stock prices plunged 14% to 21.96 euros per share in Wednesday's trading, the biggest one-day drop since August 1992 and the biggest one-day drop in nearly 16 years.
BASF said that sales of the company had dropped sharply in October this year because of the worsening financial crisis and gradually spreading to the global real economy. At present, BASF is one of the main suppliers of Volkswagen and Hyundai Heavy Industries. "Such a situation will have a huge negative impact on the market because it is like predicting an earthquake in advance," said PaulSatchell, an analyst at ING group. At present, the deterioration of the global financial market situation is astonishing. And I think all enterprises in the chemical industry will be affected by the decision of BASF. "
"I don't think anyone has seen such a sharp decline in demand. There is no doubt that the company will face great difficulties in its operation in 2009," JuergenHambrecht, chief executive of BASF, said in an interview with reporters.
不改變在華投資
"We will abide by our commitment to our partners, and our business in China will continue and investment in the Chinese market will not change." He Boke emphasizes again and again. Of course, he did not shy away from disclosing that during the economic recession, companies will operate more rationally and their investment in China will slow down and make it harder to do so. Opportunity is hidden in danger, and BASF seems to know it well. It is noted that in the world's chemical market, BASF is expanding in the world against the market. Following the acquisition of Ciba in mid September, BASF announced in October 28th that it would buy part of the polyurethane business of Rick Zale Corporation in Belgium. In addition, it sold its own paint business.
He said that this is a big idea for BASF to deal with the crisis. When the recession is at the lowest cost of acquisition, BASF will continue to buy and sell in the future. Chemical, construction and electronic products are all in the target area if they can optimize the company's business.
爭搶中國節能領域先機
BASF's "BASF home" displayed in the three "Germany China counterparts" held in Nanjing, Chongqing and Guangzhou in China has been seen brightly. Among them, the "energy-saving house" and the automobile innovation plan show the new direction of BASF's expansion of China's business. This is also a new magic weapon for BASF to deal with the economic depression.
Due to global warming and resource scarcity, energy conservation and emission reduction have become the trend of world economic development. As a developing country, China's extensive economic development over the years has consumed a lot of energy and resources, and energy conservation and emission reduction is the general trend. In recent years, the Chinese government has vigorously introduced measures for energy conservation and emission reduction. In October 1st, more energy conservation measures for residential and public buildings were introduced. BASF's early European energy efficiency programs in the construction and automotive industries, such as "energy efficient house" and innovative vehicle energy saving scheme, have undoubtedly catered for the immediate needs of China. Judging from the current policy, although China's domestic economy is also suffering from tremendous impact, investment in environmental protection, energy conservation and emission reduction will not shrink.
Insiders pointed out that BASF's current energy saving solutions still cost too much. If we can reduce the cost and let "energy-efficient housing" enter ordinary private buildings, BASF should have greater use in building energy efficiency market. Hambrecht said in an interview that BASF will integrate the newly purchased Ciba as soon as possible. The acquisition has just been completed this month and the price is $3 billion. BASF said that the company's production plan will remain in January 2009, and if the global economic situation does not improve at that time, the company will continue to extend this measure. Hambrecht said: "BASF is ready to deal with the hard times.
Now, there are still many uncertainties in the market outlook. And we can only choose to move on. "
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