BASF to divest agricultural activities
The German chemical company BASF is undergoing a significant restructuring. It plans to spin off its agricultural division, BASF Agricultural Solutions, and possibly list it on the stock market.
Preparations for this will be completed in 2027, the company announced. BASF produces crop protection products and seeds.
The company no longer considers agriculture as part of its core activities, which now include chemicals, industrial materials, and healthcare and nutrition products. In addition to agricultural products, metals and battery materials are also becoming less central to BASF’s future. The goal of this large restructuring is for these divisions to become more self-sustaining.
The chemical giant also aims to cut costs at its main location in Ludwigshafen, where more production facilities may close than previously announced. These cuts are expected to save over €2 billion annually by the end of 2026. The labor union IG BCE responded critically to the closure of facilities and job cuts.
Investors are also feeling the impact of these cost-saving measures, as BASF will reduce its dividend by about one-third.
BASF struggles with high energy costs
These measures and the focus on core activities aim to improve the company’s profitability. Currently, BASF is grappling with high energy costs, a lingering effect of Russia’s invasion of Ukraine two years ago, which led to record prices in the gas and electricity markets. At the same time, competition from China is increasing, and the company needs to make significant investments in sustainability.
In the Netherlands, BASF is active in vegetable seed breeding and the production of resins for inks and coatings. In Arnhem, the German company has an office for sales staff and divisions for the agricultural products division.
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