Chemical Giant BASF Announces Major Restructuring in Belgium
German chemical powerhouse BASF announced plans to eliminate approximately 600 jobs at its Antwerp site by the end of 2028 as part of a wider restructuring strategy aimed at reducing fixed costs. The move represents nearly 20% of the workforce at BASF’s second-largest global production center.
The company confirmed the layoffs on Wednesday, citing “a difficult economic environment” and a lack of effective industrial support measures across Europe.
“The economic context and the absence of tangible effects from measures to support the industry force us to act again,” BASF said in a statement released in Antwerp.
BASF Antwerp: Europe’s Second-Largest Chemical Site
The BASF Antwerp facility employs more than 3,000 people and is the largest chemical production complex in Belgium. It plays a crucial role in BASF’s European supply chain, producing chemicals used in plastics, coatings, fertilizers, and other industrial applications.
The restructuring will primarily target administrative and management positions, with one in every three leadership roles at the site expected to be cut. The company emphasized that it will avoid direct layoffs wherever possible, opting instead for job transitions and early retirements.
“BASF is fully committed to facilitating transitions from job to job,” the statement read. “We will work closely with employee representatives to manage the changes responsibly.”
Rising Costs and Global Pressures Force Restructuring
The decision to cut jobs comes as BASF faces mounting financial pressure from weak industrial demand, high energy prices, and stricter environmental regulations in Europe.
Last year, the company announced plans to reduce fixed costs by €100 million by 2028, but that figure has now been raised to €150 million. A significant portion of those savings will come from personnel and operational efficiencies.
The Antwerp restructuring follows similar cost-cutting efforts at BASF’s Ludwigshafen headquarters in Germany, where the company has already scaled back production of several chemical intermediates due to energy price volatility.
Industry Reaction: “A Blow to Flemish Industry”
The announcement sparked concern across Belgium’s industrial and political circles.
Frank Beckx, CEO of VOKA, the Flemish employers’ federation, called the BASF decision “a new blow for Flanders’ industry.”
“We must do everything possible to keep the crown jewels of our industrial base here,” Beckx said. “Industry remains the foundation of our prosperity.”
Similarly, Essenscia, the Belgian chemical industry federation, described the news as “tragic but predictable.”
Yves Verschueren, CEO of Essenscia, noted that high production costs and declining competitiveness had long been eroding Europe’s industrial strength.
“We have been warning for months that urgent measures are needed to restore the competitiveness of European industry,” Verschueren stated. “This decision underlines that urgency once again.”
BASF’s Global Strategy and the Energy Challenge
BASF, one of the world’s largest chemical producers, has been restructuring its European operations in response to rising energy costs and shifting global demand. The company has ramped up investments in China and North America, where energy and logistics costs are lower and demand for chemical products remains robust.
In contrast, European production sites — particularly those in energy-intensive sectors — are facing declining profitability due to high gas prices and tightening climate policies.
The Antwerp job cuts are seen as part of BASF’s broader strategy to streamline its European footprint while maintaining competitiveness in global markets.
Government Response and Economic Implications
Belgium’s Minister of Economy expressed concern over the job losses but stressed that BASF remains a key industrial player in the port of Antwerp. Talks between company management, unions, and the Flemish government are expected in the coming weeks to discuss potential retraining programs and job transition support.
Analysts say the decision highlights the fragile state of Europe’s industrial heartland, as companies continue to relocate investments to regions with more favorable business conditions.
“BASF’s move is not isolated,” said economic analyst Tom Wauters. “It’s part of a larger trend of industrial contraction in Western Europe driven by cost pressures and global competition.”
BASF’s Commitment to Sustainability and the Future
Despite the downsizing, BASF reaffirmed its commitment to sustainability and innovation at the Antwerp site. The company is investing in low-carbon chemical production technologies and exploring hydrogen-based energy systems to reduce emissions.
The chemical group aims to make its Antwerp operations climate-neutral by 2050, in line with the European Union’s Green Deal.
“We will continue to strengthen the chemical cluster in the Port of Antwerp,” said Yves Verschueren of Essenscia. “But it will require close cooperation between political leaders, companies, and social partners.”
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