BASF intends to close down production of dispersions in Arnhem

16-May-2001

BASF will propose to the supervisory board of BASF Nederland B.V. that the Kleefse Waard site in Arnhem be closed down in mid-2003. The reason for this decision is that the site, which produces dispersions for the paper and carpet industries, is no longer competitive. Profitability, which has been unsatisfactory for some years, cannot be improved with sufficiently lasting effect even through initially planned investments. Altogether 140 employees are affected by the closure.

In connection with this Harry de Vries, Executive Director of BASF Nederland B.V., declared, "There is of course great disappointment among our staff. We knew that we had to improve our competitiveness. We have all been engaged in the fight and were proud of every step forward we were able to achieve in Arnhem. We were thrown back by the plant outage in which among other things parts of our waste gas treatment system were destroyed resulting in several weeks loss of production. We have to accept that, despite all our efforts, without an integrated structure we have a rather less favorable cost position by comparison with other BASF sites in Europe which we are unable to improve sufficiently even if substantial investments were made".

Although the site may have advantages such as its proximity to major customers in the paper and textile industries the favorable logistics position could not make up for the disadvantages of outdated production technology. Following the start-up of two modern large-scale plants for polymer dispersions at the Ludwigshafen site last year and this year the situation in Arnhem has deteriorated further by comparison with other European sites.

According to Werner Auhorn, head of BASF's Paper Chemicals Europe Business Unit, "the market for paper and carpeting dispersions is characterized by the great and still growing might of demand from large international and increasingly globalized customers. That results in fierce price competition which allows us to operate profit-ably only when we have favorable cost structures. Moreover, the global players in the paper industry demand a high international standard of quality. Both, regrettably, are not achievable at the Arnhem production site".

The planned closure also means the loss of 140 jobs. Initially, however, production is to continue. As Harry de Vries says, "We expect that closure will only take place around mid-2003. Nevertheless, we will immediately enter into negotiations with the unions concerning a benefits plan for all employees affected by this". The consequent loss of jobs is to be handled in the best way possible in line with social legislation. In addition, solutions for individual members of staff are to be sought.

The production facilities in Arnhem were taken over by BASF in 1988 as a result of the acquisition of the Canadian company Polysar and have since formed part of BASF Nederland B.V. The most important products are polymer dispersions for the carpet industry and for paper coating. Overall capacity amounts to about 100,000 tons of polymer dispersions per annum.

In Europe BASF produces polymer dispersions to a high international standard of quality at the Ludwigshafen site and at the Tarragona site in Spain. Effective 2002 production will commence at Hamina in Finland. These plants will ensure the continuity of supplies to customers who are currently supplied from Arnhem. The new plants in Ludwigshafen and Hamina are equipped with very advanced and extremely flexible process technology developed by BASF which allows, for example, the production of a new group of customized color coating binders for the paper industry.

https://www.chemeurope.com/en/news/3172/basf-intends-to-close-down-production-of-dispersions-in-arnhem.html