BASF’s €8.7B China Plant Turns Profit in 100 Days; Ludwigshafen Cuts 3,370 Jobs

BASF’s €8.7 billion integrated chemical facility in Zhanjiang, China, achieved near-profitability within 100 days of opening on March 26, 2026, a result CFO Dirk Elvermann called “really spectacular.” The facility, which employs 2,000 workers and includes a steamcracker and 30+ production lines, came in under budget and on schedule. Meanwhile, BASF is cutting 3,370 jobs at its Ludwigshafen headquarters, the world’s largest chemical production site, as it fights to return the deficit-ridden plant to profitability.

China plant races to profit ahead of schedule

BASF opened its Zhanjiang integrated chemical complex on March 26, 2026, after investing €8.7 billion. Within 100 days, the facility had already logged nearly two profitable months, despite the company forecasting losses in the first operating year. The plant came in under budget and all production lines were operational and ready to ship from day one. CFO Dirk Elvermann told the German Press Agency and dpa-AFX that such on-time, under-budget delivery “does not happen often” on projects of this scale.

Steamcracker and 30 product lines drive Zhanjiang success

The facility’s centerpiece is a steamcracker, a large installation that splits crude benzene using steam to produce basic chemicals. The plant operates more than 30 production lines, making it a fully integrated Verbund site where by-products from one process feed into the next, reducing energy use and waste. The 2,000-person workforce has achieved full production capacity immediately, allowing BASF to meet customer orders without ramp-up delays.

Ludwigshafen shrinks as restructuring deepens

BASF is cutting 3,370 jobs at its Ludwigshafen headquarters, reducing the workforce from 33,370 at the end of 2024 to 30,000 today. The company expects further reductions as productivity gains accelerate. CFO Elvermann said employees are proposing ideas to improve efficiency, raise synergies, and cut costs, describing “a lot of cohesion and team spirit.” The path back to profitability at Ludwigshafen is long, but the company is committed to giving workers a future and securing the site’s long-term competitiveness.

Market demand drives BASF’s geographic shift

Elvermann emphasized that market demand, not cost arbitrage alone, justified the China investment. “Ultimately, the market is decisive for where we invest,” he said. BASF operates Verbund sites across Europe, North America, South America, and Asia, serving automotive, construction, agriculture, consumer goods, and energy sectors. The Zhanjiang facility positions BASF to capture growth in Asian chemical demand while its home plant adapts to higher European energy and labor costs.

Final Thoughts

BASF’s China triumph contrasts sharply with Ludwigshafen’s struggle, signaling a structural shift in the company’s footprint. With the Zhanjiang plant already near profit and 3,370 German jobs cut, investors face a company in transition: growth in Asia, retrenchment at home.

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