BASF (BASFY) to Stop Glufosinate-Ammonium Production at 2 Sites

Core Viewpoint - BASF SE plans to cease production of glufosinate-ammonium (GA) at its Knapsack and Frankfurt facilities in Germany by the end of 2024 due to economic factors, with the formulation in Frankfurt concluding in 2025 [1] Group 1: Production Changes - The production facilities for GA will be shut down following the conclusion of the formulation in Frankfurt [1] - BASF's decision is influenced by increased competition from generic manufacturers, alternative technologies, and high energy and raw material costs [7] - The company will eventually source GA from third-party vendors to ensure long-term profitability and competitiveness in the market [7] Group 2: Employment and Workforce Impact - All jobs will be preserved until the end of 2025, after which the workforce will be gradually reduced in consultation with employee representatives [8] - The company is committed to assisting employees in finding future career options [8] Group 3: Product Development and Market Focus - BASF remains dedicated to providing high-quality GA solutions while focusing on developing next-generation GA products that require lower application rates [9] - The aim is to support farmers throughout the Americas and Asia with effective solutions [9] Group 4: Financial Performance - BASF shares have declined by 5.2% over the past year, compared to a 13.5% decline in its industry [3] - The company currently holds a Zacks Rank of 4 (Sell) [4]