BASF Restructures Glufosinate-Ammonium Production Network

Production Changes Announced

BASF Agricultural Solutions has announced plans to cease production of the active ingredient glufosinate-ammonium (GA) at its Knapsack and Frankfurt sites in Germany by the end of 2024. The GA formulation at the Frankfurt site will conclude in 2025, after which both facilities will be shut down. Despite these changes, GA remains a crucial component of BASF’s global herbicide portfolio.

Challenges and Strategic Shift

The decision to halt production stems from increasing competition from generic manufacturers, alternative technologies, and rising energy and raw material costs. Although both production facilities have managed to achieve cost reductions, BASF has found its volume and profitability development insufficient. To secure long-term competitiveness and profitability in the GA market, BASF will restructure its production network by sourcing the active ingredient from third-party suppliers.

Impact on Employment

All approximately 300 jobs at the Knapsack and Frankfurt sites will be retained until the end of 2025. Afterward, the workforce will be gradually reduced in consultation with employee representatives. BASF is committed to working closely with employees to assist in finding future employment opportunities.

Commitment to Quality and Innovation

Michael Heinz, a Member of the Board of Executive Directors at BASF, expressed regret over the necessity to discontinue production at the two sites, acknowledging the high commitment of employees over the past years. Heinz emphasized BASF's ongoing commitment to providing customers with top-quality GA solutions. He also highlighted the company's focus on developing next-generation GA solutions that deliver the same results with significantly lower application rates, benefiting farmers in the Americas and Asia.

Importance of Glufosinate-Ammonium

Glufosinate-ammonium is one of the most widely used broad-spectrum herbicides, effectively controlling weeds in a variety of crops worldwide.

Highlights

• BASF plans to cease production of glufosinate-ammonium at Knapsack and Frankfurt sites by the end of 2024 and 2025, respectively.
• Rising competition, alternative technologies, and high costs drive the decision.
• BASF will source GA from third-party suppliers to maintain market competitiveness.
• Approximately 300 jobs will be retained until the end of 2025, with gradual reductions afterward.
• BASF remains committed to delivering top-quality GA solutions and developing next-generation products.