BASF and employee representatives have reached a new site agreement covering the company’s Ludwigshafen headquarters in Germany. Under the agreement, BASF will refrain from compulsory redundancies at the site until 31 December 2028. The agreement will take effect on 1 January 2026 and initially runs for three years.

An extension of up to two additional years is предусмотрed if agreed profitability targets are met. The current agreement expires at the end of 2025. With more than 30,000 employees, the Ludwigshafen site accounts for around one third of BASF’s global workforce.

Investments alongside structural transformation

BASF plans to invest around EUR 2 billion per year in the Ludwigshafen site, focusing on infrastructure modernisation and expansion. At the same time, the group is undergoing a broad structural transformation aimed at improving competitiveness.

Planned measures include divestments of selected business units, a potential IPO of the agricultural business in 2027, and a reduction of the dividend for the first time since 2010. Despite the job security agreement, BASF management continues to highlight the challenging conditions facing the chemical industry in Germany, particularly high energy costs and global competitive pressure.

Employee representatives described the negotiations as demanding but constructive. The Industrial Union Mining, Chemicals and Energy (IGBCE) referred to the agreement as an important stabilising framework in a prolonged period of economic uncertainty.