BASF closes UK pigment plant
23 Oct 2013
German chemicals giant BASF today announced it was closing its pigment plant in Paisley, Scotland.
The 18,000 tonnes-per-year facility exports more than 80% of its products, which are used primarily to colour inks, paints, paper and plastics. The pigments are sold as powders, aqueous pastes and in dry granule form.
BASF’s decision to close the plant and make 141 workers redundant follows the redundancy of 232 workers at the site in 2010.
The German firm acquired the Paisley site in 2008 as part of £3 billion takeover of Swiss firm Ciba.
The future global production network will enable us to reliably and efficiently supply our partners
BASF Dispersions & Pigments president Markus Kramer
Today’s decision to close the plant was made as part of a wider restructuring of BASF’s international Performance Products business division.
In addition to the Paisley closure the restructure, which will cost 650 jobs by 2017, will see the firm potentially shrink plants in France and the Netherlands. At the same time it will invest €250 million in other areas, including the expansion of pigment plants in China and Korea.
“The measures we are undertaking will make us more responsive to market and customer needs,” said BASF Dispersions & Pigments president Markus Kramer.
“The future global production network will enable us to reliably and efficiently supply our partners from a competitive base.”
Regarding the closure at Paisley, BASF released a statement saying:
“The Paisley site manufactures Azo pigments. The global market for these pigments is shrinking. Increasing manufacturing capacities and the entry of new competitors have changed the business environment significantly.
“A large part of Paisley’s products are used for printing publications and the once high-volume printing industry is shrinking as new technologies reduce demand for pigments. BASF is adapting its Azo pigment business to these changed market conditions by restructuring measures, including consolidating production at cost competitive sites. It will stop producing Azo pigments for the printing industry and focus on innovative products, mainly for the plastics industry.
“The Paisley site, which BASF acquired in 2009, is not cost competitive. Restructuring programs over the last three years have succeeded in reducing fixed costs, but the rapidly changing market situation resulted in unsustainable manufacturing cost at the site.”
