Increasing Competitive Struggle In Chemical Market Resulted In Shutdown Of BASF’s Zachary Plant

Feb-2019 | e-Market Research | Chemicals & Materials

The global chemical market has observed a noteworthy structural shift in the past few years, new technology, new budding growth markets, change in manufacturing places to Asian countries, as well as the all-inclusive influence of the global economic crisis together with increasing prices of raw material. However, carbon emissions policies and regulation remains the key challenges that are driving the firms toward greener products and shift from petrochemical-based raw materials.

Recently, Blythe Lamonica, the Southeast Region Communications Manager of BASF, stated that in spite of making “noteworthy capital expenditure” in the Zachary-located facility, the firm has settled on to shut it. The site was acquired by BASF in 2012 from Novolyte Technologies. Lamonica states the altering requirements of consumers, elevated competitive pressures, and evolving market dynamics proved too tough to uphold sustainable profitable operations, thus, impacting its contribution to the global chemical market.

The BASF chemical unit in Zachary will shut in April, impacting over 50 jobs at the location. Around half of the staff have already been provided with new jobs, as per Lamonica. The German firm is the world’s biggest chemical producer and runs almost 390 production location in Asia, Europe, the Americas, Africa, and Australia.

The Zachary unit had 3 production units, wherein it generated glycol diethers/glycol ethers, utilized in electronics, pharmaceuticals, cosmetics, and agrochemicals. The plant also made specialty solvents that are utilized in industrial coatings in addition to electrolytes that are utilized in batteries.

The pronouncement of the shutdown of the Zachary plant was proclaimed last Spring. The declaration was conveyed internally and to local & state officials as the firm had a year to hold on to the 54 workers within the company. The unit will be in manufacture until April and few of the workers will keep on until the site is closed down completely.