BASF to close three X-SBR plants as paper industry plummets

ERJ staff report (DS)

Ludwigshafen, Germany -- BASF's paper chemicals division will close production of XSB (carboxylated styrene butadiene) paper coating binders at its sites in Guturribay (Spain), Kaipiainen (Finland) and Ribécourt (France) by mid-2010. Around 40 jobs will be affected.

This represents a reduction of about 40%, or 310KT, of the company's total XSB capacity in Europe. By consolidating production at its plants in Hamina (Finland), Ludwigshafen (Germany) and Pischelsdorf (Austria), BASF said capacity utilisation at those plants will increase significantly, leading to an improvement in cost structure.

BASF's paper coating binder business is suffering from unsatisfactory profitability due to overcapacities in the European market, which has shrunk steadily in recent years. The decision to consolidate production was based on a thorough analysis of all six of BASF's XSB plants in Europe with respect to their cost position and investment requirements.

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Press release from BASF