BASF Revamp Creates Two New Units: Paper And Oilfield Chemicals

The chemicals company said that the changes would result in approximately 120 job cuts.

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In an effort to streamline its vast portfolio, BASF has announced that it will create two new business units one for paper and water, the other for oilfield and mining chemicals.

The German mega-chemicals company said that the changes would result in approximately 120 jobs being cut globally after they take effect Jan. 1.

It’s the latest in a string of restructuring measures that began after BASF acquired Ciba for $5 billion six years ago. Led by CEO, Kurt Bock, the restructuring of the company’s performance-products division has already caused more than 4,500 job cuts and 35 plant closures.

BASF recently cut its sales forecast for 2015, citing a sluggish global economy. The company said the collapse in global oil prices had led to 8 percent price declines, especially in its oil and gas chemicals segments.

In a statement, the company said this new reorganization would “foster customer and industry focus and increase competitiveness.”

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