BASF SE is set to discontinue the production of extruded polystyrene (XPS) at its Schwarzheide location in Germany, due to overcapacity and low margins, the German chemicals company announced July 24.
At the same time, the company will concentrate the production of XPS boards at its Verbund site in Ludwigshafen, Germany, by the end of 2017.
The move will consolidate all BASF XPS product range into one location.
This, it said, will ensure “direct supply of raw materials, optimised logistics, and direct access to research and development facilities.”
The company will have no compulsory redundancies.
“We are implementing this measure to make sure that we remain competitive in those markets in which we are able to generate added value for our customers and for BASF in the long term”, said Klaus Ries, head of global business management styrenic foams at BASF.
BASF's propriety welding technology developed for use on insulation boards, which is currently in operation at the Schwarzheide, will be transferred to Ludwigshafen and operated from this location.