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| BASF to slash about 3,700 jobs by 2013 |
| Press Trust of India / Berlin/New Delhi Jul 07, 2009, 14:58 IST |
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German chemical company BASF, which has a significant presence in India, will slash about 3,700 jobs by 2013 as part of its restructuring measures.
The company is considering to close 23 of the 55 former Ciba production sites worldwide and would consolidate remaining 32 of 70 sales and administrative offices and research sites into its existing operations, BASF said in a statement.
BASF's,"restructuring plans include a reduction of approximately 3,700 positions by 2013, the majority of which will be eliminated by the end of 2010," the statement said.
The move would save at least ¤400 million per year from 2012 onward. By the end of 2010, savings of around ¤300 million are to be achieved.
BASF Chairman Jurgen Hambrecht said, "This is unfortunately not good news for some of our employees, But the combined businesses can be successful in the long term only if we optimize them and exploit the full potential for synergies."
"I promise all our employees that we will keep the period of uncertainty as short as possible and will make decisions in a fair and transparent way," he added.
BASF Group in India has more than 1,300 employees having multi-location production sites and an R&D centre, which is part of the BASF Global Technology Platform.
BASF aims to implement the restructuring measures in a socially responsible manner and has begun talks with local employee representatives.
The statement said the company was reviewing its strategic options, including restructuring, sale or closure, for 23 of the 55 former Ciba production sites worldwide.
"Decisions will be made about these sites by the end of the first quarter of 2010," it added.
The chemical entity further said remaining 32 production sites are to be optimised as part of BASF's global production network or restructured.
By the end of 2010, BASF also aims to consolidate 36 of the former Ciba's 70 sales and administrative offices and research sites with existing BASF activities.
The integration is expected to cost ¤550 million in cash of which about ¤150 million would be incurred in 2009, it added.
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