Ludwigshafen, Germany -- BASF revealed 6 July that its plans for the integration of Ciba Holding AG include cutting 3700 jobs by 2013, and the restructuring, sale or closure of 23 of the 55 former Ciba production sites worldwide.
Most of the jobs will be eliminated by the end of 2010. Decisions on the 23 sites will also be made by then, BASF said.
Former Ciba businesses are to be integrated into the operating divisions in BASF's Performance Products segment in extensive restructuring, which BASF expects to give savings of at least Euro 400 million ($556 million) per year from 2012.
By the end of 2010, savings of about Euro 300 million will be made. Integration is expected cost about Euro 550 million, some Euro 150 million of that in 2009, BASF said.
Ciba's remaining 32 production sites are to be optimised as part of BASF's global production network or restructured. By the end of 2010, BASF also aims to consolidate 36 of the former Ciba's 70 sales and administrative offices and research sites with existing BASF activities.
The company said it will retain a strong presence in the Basel region. BASF's new Paper Chemicals division, and its businesses in Coatings & Starch Europe and Wet End Chemicals have been based in Basel since 1 July 2009.
In addition, the European business unit for plastic additives -- where both CIBA and BASF offer materials for the polyurethanes business -- has been relocated to Basel.
Ciba's plastic additives business will be integrated into BASF's Performance Chemicals division. This will extend BASF's portfolio to cover important product segments such as UV stabilisers and antioxidants, "making BASF the world leader in plastic additives," the company said.
"
