BASF has finalised its plans for the integration of Ciba Holding, which it acquired in April. The former Ciba businesses are to be integrated into the operating divisions in BASF’s Performance Products segment. The integration will involve extensive restructuring measures that BASF expects to generate synergies of at least €400mn per year from 2012 onward. By the end of 2010, savings of approximately €300mn are to be achieved.
The restructuring plans include a reduction of approximately 3,700 positions by 2013, the majority of which will be eliminated by the end of 2010. BASF has begun talks with local employee representatives.
BASF is reviewing strategic options – including restructuring, sale or closure – for 23 of the 55 former Ciba production sites worldwide. Decisions about these will be made by the end of the first quarter of 2010. The remaining 32 sites will either become part of BASF’s global production network or be restructured.
By the end of 2010, the company also aims to consolidate 36 of the 70 former Ciba sales and administrative offices and research sites with its existing activities.
The company will retain a strong presence in the Basel region. BASF’s new Paper Chemicals division, formed in April, and the two associated business units Coatings & Starch Europe and Wet End Chemicals have been based in Basel since July 1, 2009. In addition, the European business unit for plastics additives, and the global units for technology management and the restructuring of the pigments business have been relocated to the former Ciba headquarters in Basel.
A BASF research centre will also be based in Basel, together with a new Business Centre Switzerland that will function as a service platform for sales, finance, human resources and other activities.
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