BASF to cease adipic acid production in Ludwigshafen, Germany: spokesperson

BASF will cease production of adipic acid, cyclododecanone, and cyclopentanone at its Ludwigshafen site in Germany, as part of a broader restructuring effort, a company spokesperson said Aug. 30.

The shutdown of the production plant for cyclododecanone and cyclopentanone is scheduled for the first half of 2025, while adipic acid production will end later that year.

The current nameplate capacity of the Ludwigshafen adipic acid site is 115,000 metric tons per year.

This decision aligns with BASF's ongoing review of its operations at Ludwigshafen, aimed at strengthening its long-term market position.

The spokesperson said BASF aims to transform Ludwigshafen into a "leading, sustainable, and profitable chemical site for Europe." The decision to halt adipic acid production is part of a strategic review of the site's production setup to ensure competitiveness amid changing market conditions.

The spokesperson added that European adipic acid production is currently challenged by "decreasing demand and higher production costs compared to other regions, particularly due to higher energy costs."

Additional factors driving this transformation include the profitability and future market requirements. BASF is also looking at the development of the legal framework in Europe, raw material availability, energy and infrastructure, according to the spokesperson.

While specific closure dates were not provided, BASF confirmed it will continue to serve customers based on its global adipic acid Verbund, with production assets in Onsan, South Korea, and Chalampé, France. Regarding potential supply disruptions, the spokesperson said that "remaining capacities will be sufficient to serve both captive and third-party demand."

This move is part of BASF's broader strategy to focus on growth areas. In recent years, the company has made acquisitions in battery materials, engineering plastics, and agricultural solutions, while divesting from pigments, construction chemicals, and water treatments.

The closure at Ludwigshafen follows a production capacity reduction announced in February 2023, which was part of BASF's efforts to adapt its operations to current market conditions.

Platts, part of S&P Global Commodity Insights, last assessed the European spot price of adipic acid at Eur1,500/t DDP Northwest Europe on Aug. 28, down Eur100/t on the day and on the week.