BASF to cut production as demand fades

BASF to cut production as demand fades

Hyderabad: Indian operations of the world’s largest chemical company by revenue, BASF SE, are expected to be affected by global production cuts announced by the company on Wednesday.

“Some of the businesses catering to the automobile, construction and textiles sectors could be impacted," a spokesperson for BASF India Ltd said, adding no “major impact" is expected as a result of the production cuts. BASF has nine production plants in India and employs at least 1,300 people.

BASF India had revenue of Rs1,054 crore in the year ended March.

BASF, based in Ludwigshafen, Germany, had on Wednesday said it will close 80 plants around the world, including some in Asia, and another 100 plants will cut production in response to “massive decline in demand" from key industries.

Further production cuts may follow in January depending on the demand situation, the company had said.

Among the main reasons cited by the company for the production cut was a substantial drop in demand from the auto industry, a major consumer of BASF’s chemical products.

Shares of BASF India fell 7.2% to close at Rs208 each on the Bombay Stock Exchange, on a day when the exchange’s benchmark index lost 3.68%.