“Demand for TDI has developed only very weakly, — especially in Europe, Middle East and Africa — and has been significantly below expectations,” the company said. “The TDI complex in Ludwigshafen has been underutilized and has not met expectations in terms of economic performance.”
BASF also announced close plants at thesite making the TDI precursors dinitrotoluene and toluene diamine.
European customers will be served from its other three global TDI production sites. These are at Geismar, La., on the U.S. Gulf Coast, Yeosu, South Korea, and Shanghai.
These closures are part of a wider cost-cutting plan for its European business. The changes will be made this year and in 2023 and are expected to create annual cost savings of more than 500 million euros ($530 million) in non-production areas. This will include bundling services consistently in hubs, simplifying divisional management structures, right-sizing business services, and increasing R&D efficiency.