BASF to Halt Adipic Acid and Chemical Production at Ludwigshafen

BASF SE BASFY announced the cessation of production for adipic acid, cyclododecanone (CDon) and cyclopentanone (CPon) at its Ludwigshafen site. The production facilities for CDon and CPon are scheduled to shut down in the first half of 2025, while the remaining adipic acid production at the site will be discontinued later in the same year.This decision is part of BASF's ongoing strategic review of its production setup at Ludwigshafen to maintain competitiveness amid evolving market conditions.BASF SE Price and Consensus  BASF SE price-consensus-chart | BASF SE Quote BASF’s Strategic Actions for Ludwigshafen SiteBASF had already reduced the production capacity for adipic acid as part of adjustments to the Verbund structures at Ludwigshafen, announced in February 2023. The remaining adipic acid production continued partially to ensure the supply of raw materials for CDon and CPon production. BASF plans to coordinate with customers to manage the cessation of CDon and CPon deliveries.Approximately 180 employees will be impacted by these plant closures. BASF is committed to assisting affected employees in finding new employment opportunities within the BASF Group.The company further explained that these closures are part of a long-term strategy aimed at transforming the Ludwigshafen site.BASF’s Efforts to Improve ProfitabilityBASFY stated that this decision is essential to maintain profitability across the Verbund value chains by adjusting production structures to align with the evolving market landscape. It will work closely with customers to minimize the impact of these closures. Adipic acid production will continue at BASF's facilities in Onsan, South Korea and through a joint venture in Chalampé, France.CDon is a key raw material for producing lauryl lactam, a precursor for the high-performance plastic polyamide 12 (PA 12). It is also utilized in the synthesis of musk fragrances and UV stabilizers. CPon serves as a building block for synthesizing crop protection agents and active pharmaceutical ingredients, as a solvent in semiconductor manufacturing and as a precursor in the production of special fragrances. Adipic acid is used in the production of polyamides, polyurethanes, coatings and adhesives, among other applications.BASF’s Price PerformanceIn the past year, the stock has inched up 0.8% against the industry’s 8.1% fall in the same period.Image Source: Zacks Investment ResearchBASF’s Zacks Rank & Key PicksBASF currently carries a Zacks Rank #3 (Hold).Some better-ranked stocks in the Basic Materials space are Newmont Corporation NEM, Carpenter Technology Corporation CRS and Eldorado Gold Corporation EGO, each sporting a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.The Zacks Consensus Estimate for Newmont’s current-year earnings is pegged at $2.82 per share, indicating a rise of 75% from the year-ago levels. The consensus mark for NEM’s earnings has increased 14% in the past 60 days.The stock has gained nearly 35.8% in the past year.The Zacks Consensus Estimate for CRS’ current-year earnings is pegged at $6.06 per share, indicating a rise of 27.9% from the year-ago levels. CRS’ earnings beat the consensus estimate in each of the last four quarters, the average earnings surprise being 15.9%. The stock has rallied nearly 125% in the past year.The Zacks Consensus Estimate for Eldorado Gold’s current year earnings is pegged at $1.35 per share, indicating a year-over-year rise of 136.8%. EGO beat the consensus estimate in each of the last four quarters, with the average surprise being 430.3%. The company's shares have surged nearly 80.4% in the past year.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Newmont Corporation (NEM): Free Stock Analysis Report BASF SE (BASFY): Free Stock Analysis Report Carpenter Technology Corporation (CRS): Free Stock Analysis Report Eldorado Gold Corporation (EGO): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks