BASF, the world’s largest chemical company, delivers another bad news to the employment market after announcing its plan to temporarily shut down 80 of its plants worldwide.
The decision came as the company is hit with a serious decline in demand triggered by the present global economic crisis and financial meltdown.
A big number of staff would also be required to go for enforced holidays between now and Christmas time as the company is looking for ways to reduce piling stock and cut down expenditures.
Worst to be affected are their chemical plants and facilities, located in Ludwigshafen (Germany), Antwerp (Belgium), Nanjing (China) and Kuantan, Pahang (Malaysia).
Orders from customers including car makers, manufacturers, textile producers and other industrial players have come to a near halt, forcing the company to review its production activity. Some 20,000 out of the total 95,000 workers will be affected with the move. About half of the total workforce is based in Germany.
BASF Chemical is a German-origin chemical company owning more than 150 subsidiaries as well as having partnership interest with leading companies across Asia, Australia, Europe, America and Africa. Its wide range of products and specialties include plastic, agricultural solutions, functional polymers, as well as oil and gas related products. BASF is officially the world’s largest chemical company by revenue.
BASF began its operation in Malaysia in 1989 and since then has set up a number of plants and facilities across the country including in Kuala Lumpur, Selangor, Johor, Pahang and Kedah and Terengganu. In 2004, BASF created another subsidiary company, BASF Asia Pacific Center (BASC) with operation base in Menara TM, Kuala Lumpur, acting as the processing center for BASF subsidiary companies across Asia Pacific.