BASF to Cut Costs and Sell Silicates Business to PQ
BASF plans to reduce fixed costs by 20% by 2029 and sell its silicates unit to PQ. CEO Markus Kamieth noted the restructuring will likely lead to job cuts.
BASF SE will reduce net cash fixed costs in its core businesses by up to 20% by 2029 and sell its silicates unit to PQ (a U.S. rival). The cost-cutting initiative represents one of the largest optimization programs in the history of the Germany-based chemical group. Investors are weighing the impact of a leaner operating model against the execution risks of a multi-year restructuring.
### Efficiency Drive Targets Fixed Costs Chief Executive Markus Kamieth told the Handelsblatt newspaper that the program functions as a new operating system for the company. The plan aims to lower fixed costs significantly by 2029 through a more streamlined corporate structure. Kamieth noted the transition will likely lead to job cuts as the firm moves toward a core business with fewer employees.
