Pondering Pigments

BASF Gears Up for More Restructuring

Bock BASF by dpa
Kurt Bock, BASF's CEO, can continue restructuring the chemicals giant.
  • Why it matters

    Why it matters

    BASF, the world’s largest chemicals firm, needs to improve efficiency to keep up competition with Asian rivals and increase earnings.

  • Facts

    Facts

    • BASF, which will announce second-quarter results on Friday, has been reorganizing its pigments operations to improve profitability.
    • Chief executive Kurt Bock, who initiated a restructuring program in 2013, has had his contract extended by five years to 2021.
    • BASF sales rose 3 percent to €20.1 billion in the January-to-March period, while net income fell 20 percent to €1.2 billion.
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    Audio

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BASF, the world’s biggest chemicals firm, is moving ahead with restructuring plans, in a bid to keep pace with Asian rivals.

After selling parts of its pharmaceutical business for €270 million, or $296 million, the company signalled yesterday that it may be preparing to sell its pigments operations.

The company, based in Ludwigshafen in southwest Germany, said Wednesday it would combine its global pigments operations into one unit to then “carve out” the businesses from the rest of the company by the second half of next year.

“We are looking at all options for the pigments operations and will then decide how to go forward,” a BASF spokeswoman said, according to Reuters.

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