BASF prepares for tough conditions during war. (News: Europe).(plans plant closures and process improvements, cost cutting)

Chemical Market Reporter, March, 2003 by Milmo, Sean

BASF AG, EUROPE'S largest chemicals producer, is preparing for tough market conditions following the outbreak of war in Iraq. The company is pressing ahead with its cost-cutting program. It continues to reduce capital expenditures and raises productivity through plant closures and improved processes.

A major concern, however, is the amount of higher raw material costs it will be able to pass along through higher selling prices, particularly during a period of volatile crude oil prices. Since the last quarter of 2002, the company has begun to push up its prices, which were under pressure for most of the year. But now it is uncertain whether the company will be able to maintain this momentum. "We feel confident that if demand had continued to be...

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