BASF to Close Two Glufosinate-Ammonium Sites in Germany

BASF has announced to cease production of Glufosinate-Ammonium (GA) at its Knapsack and Frankfurt sites in Germany by the end of 2024 by citing economic reasons. Production of the GA formulation in Frankfurt will continue until 2025, after which both facilities will be shut down. Despite this change, Glufosinate-Ammonium remains an integral component of BASF’s global herbicide portfolio, underscoring its significance in the company's product lineup.

The decision to halt GA production is driven by several factors, including escalating competition from generic manufacturers, the advent of alternative technologies, and increasing energy and raw material costs. Although efforts to reduce costs at both production facilities have been implemented, the overall volume and profitability have not met BASF’s expectations. In light of economic considerations, BASF is optimizing its production network by strategically shifting to a third-party supplier model for the active ingredient. This strategic move aims to enhance BASF’s long-term competitiveness and profitability within the GA market.

Regarding workforce implications, BASF will maintain all jobs (approximately 300) until the end of 2025, ensuring job security in the short term. Following this period, the company will implement a gradual reduction of positions in close consultation with employee representatives to ensure a fair and transparent process. BASF is dedicated to supporting affected employees through this transition by providing assistance in finding future employment opportunities and offering resources to help them navigate the job market successfully.

Michael Heinz, Member of the Board of Executive Directors at BASF, expressed deep regret over the decision to discontinue production at the two sites, acknowledging the dedication and hard work of the employees over the past years. Despite this difficult decision, BASF remains committed to providing top-quality GA solutions to its customers. Heinz highlighted the company's focus on the development of next-generation GA solutions that promise to deliver the same results but with significantly lower application rates. This innovation aims to benefit farmers in the Americas and Asia by enhancing efficiency and sustainability in agricultural practices, reinforcing BASF's dedication to advancing agricultural technology.

Driven by a deep commitment to agriculture, BASF prioritizes providing healthy and affordable food for a burgeoning global population while simultaneously minimizing environmental impact. This dedication is reflected in their collaborative approach, working with industry experts to seamlessly integrate sustainability criteria into all business decisions. Their R&D program translates innovative ideas into practical solutions specifically tailored for diverse crop systems. The company offers a comprehensive portfolio encompassing seeds & traits, crop protection products, digital tools, and sustainable practices. This empowers farmers, growers, and all stakeholders across the value chain to achieve optimal results. From research labs to production facilities, dedicated teams relentlessly pursue a sustainable future for agriculture.