FRANKFURT, Dec 20 Reuters BASF appointed company veteran Markus Kamieth on Wednesday to become CEO next year, amid an organisational overhaul of the chemicals giant, grappling with falling earnings and sluggish economic growth in its European home markets.

In a statement, the German company said Kamieth would replace CEO Martin Brudermueller in April, with the latter having previously been appointed to become nonexecutive chairman of carmaker MercedesBenz .

Chief technology officer Melanie MaasBrunner would not renew her current contract beyond Jan. 31, BASF added.

The board had considered both Kamieth and MaasBrunner for the top job, sources familiar with the matter have told Reuters, though media reports had described Kamieth as frontrunner.

A few months ago, I made the decision not to extend my board contract and to pursue a new professional direction, MaasBrunner said on the website LinkedIn.

The choice of CEO is in keeping with a BASF history of recruiting top executives from its own ranks.

The transition comes after BASF renewed its commitment to build a 10billioneuro 11billion chemical complex in southern China to tap into faster growth there and cut what it has called disproportionate reliance on subdued European home markets.

Sources have told Reuters that both Kamieth and MaasBrunner have supported BASF39;s investment focus on China, which runs counter to German government efforts to persuade companies to reduce their dependence on the country.

Arne…