Get 40% Off
💰 Buffett reveals a $6.7B stake in Chubb. Copy the full portfolio for FREE with InvestingPro’s Stock Ideas toolCopy Portfolios

BASF to sell Norway plant, cut jobs to bolster profits

Published 25/04/2014, 13:22
BASFN
-

FRANKFURT (Reuters) - Germany's BASF DE:BASFN said on Friday it would sell a plant in Norway and cut jobs around the world as it tries to boost profits at its health and nutrition business.

BASF, the world's biggest chemicals maker by sales, has been seeking to expand its Performance Products division that includes health and nutrition - for instance recently buying Norwegian fish oil maker Pronova - but integration of acquisitions and restructuring have weighed on profitability.

The annual operating profit margin of BASF's Performance Products division narrowed to 12.8 percent from 13.3 percent last year.

BASF now plans to sell its Brattvag site in Norway, which makes low concentrated omega-3 fatty acids, and cut about 260 jobs in production, marketing and administration around the world by the end of 2015.

It is also building a plant in Malaysia with its partner Petronas - due to start coming on stream in 2016 - which will manufacture citral, an ingredient in flavours and fragrances, to tap into growing demand from Asia.

"Through these measures we will adapt our business to better meet market and customer needs. At the same time, we will improve our profitability," Saori Dubourg, head of BASF's Nutrition & Health business, said in a statement.

BASF said it would continue to look into further measures to bolster the Performance Products segment.

(Reporting by Maria Sheahan; Editing by Sophie Walker)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.