BASF to slash costs further by 1 billion euros in home market
Predicts profit rebound, thanks to demand in rest of world
More job cuts at Ludwigshafen HQ on the cards

FRANKFURT, Feb 23 Reuters Germany39;s BASF will slash another 1 billion euros 1.1 billion in annual costs at its Ludwigshafen headquarters, citing weak demand and high energy costs in its home market, highlighting the country39;s economic woes.

The annual cost savings will be reached by the end of 2026, affecting both production and administrative activities at its largest chemical complex, the German chemicals giant said in a statement on Friday.

It also predicted that group earnings before interest, taxes, depreciation and amortisation EBITDA, adjusted for oneoffs, would rebound to between 8 billion and 8.6 billion euros in 2024. Last year, it fell 29 to 7.67 billion.

CEO Martin Brudermueller, who will quit in April to become nonexecutive chairman of carmaker MercedesBenz, cited high competitiveness of the group outside of Germany under challenging conditions.

On the other hand, the negative earnings at our Ludwigshafen site show the urgent need for further decisive actions here to enhance our competitiveness, he added.

An economic downcycle at home is weighing on volumes affecting specialty chemicals and more basic petrochemicals known as its upstream business, the company said. This would lead to more job cuts that are being discussed with shop stewards.

Higher production costs due to…