Polymer and additives maker BASF (Ludwigshafen, Germany) says a massive decline in demand in many of its key customer markets related to the global recession is forcing it to close 80 plants around the world and reduce production at an additional 100, including its polystyrene and caprolactam (a pre-product for nylon production) facilities. Jürgen Hambrecht, the company’s chairman of the board of executive directors says these measure are being taken to avoid overcapacities. The company is using the closures and plant reductions to schedule maintenance work that was originally planned for later, he says.

“We already drew attention to the difficult economic situation at the end of October. Since then, customer demand in key markets has declined significantly,” Hambrecht says. “In particular, customers in the automotive industry have canceled orders on short notice.” BASF says customers are being impacted by a lack of credit and are emptying their resin inventories for any current work.

Hambrecht says his company won’t achieve last year’s earnings in 2008, but he is not predicting how next year will play out except to say, “BASF is preparing for tough times.” Globally about 20,000 workers will be affected by the production cuts. Nevertheless, BASF is proceeding with its planned acquisition of Swiss-based additives maker Ciba.