BASF has announced that it will cease production of adipic acid, cyclododecanone (CDon) and cyclopentanone (CPon) at its Ludwigshafen plant. The CDon and CPon plants are scheduled to be shut down in the first half of 2025, and the remaining adipic acid production at the plant will also cease later that year.
       This decision is part of an ongoing strategic review of BASF’s production facilities in Ludwigshafen, aimed at maintaining competitiveness in changing market conditions.
       In February 2023, as part of the reorganization of the integrated Ludwigshafen system, BASF announced the reduction of adipic acid production capacity. The remaining adipic acid capacity will be partially maintained to ensure the supply of raw materials for the production of CDon and CPon. BASF plans to coordinate with customers to resolve the interruption of CDon and CPon deliveries.
       The closures will affect around 180 employees. BASF is committed to helping affected employees find new employment opportunities within the BASF Group.
       The company also explained that the closures are part of a long-term strategy aimed at transforming the Ludwigshafen site.
       BASF said the decision is critical to maintaining profitability in the Verbund value chain by adapting production structures to the changing market situation. BASF will work closely with its customers to minimize the impact of these plant closures. Adipic acid production will continue at BASF’s Onsan site in South Korea and at the joint venture in Charampay, France.
       Adipic acid is a key raw material for the production of lauryl lactam, a precursor to the high-performance plastic polyamide 12 (PA 12). It is also used in the synthesis of musk fragrances and as a UV stabilizer. Adipic acid is used as a building block for the synthesis of plant protection products and active pharmaceutical ingredients, as a solvent in the production of semiconductors, and as a precursor for the production of specialty fragrances. Adipic acid is also used in the production of polyamides, polyurethanes, coatings, and adhesives.
       The stock has gained 0.8% over the past year, while the broader industry has lost 8.1% over the same period.
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