BASF Signs New Ludwigshafen Site Agreement
From left: Dr. Marc Heider (Chair of the Spokesperson Committee of Executive Employees, BASF SE), Sinischa Horvat (Chair of the Works Council, BASF SE) Dr. Katja Scharpwinkel (Member of the Board of Executive Directors and Industrial Relations Director, BASF SE) Dr. Helmut Winterling (President European Verbund Sites, BASF SE) during the symbolic signing of the new site agreement. Photo: BASF/Andreas Henn
BASF SE announced that management and employee representatives concluded a new site agreement titled “Shaping the Future for a Strong Site” covering employees at the Ludwigshafen site. The agreement is intended to run for five years, applying initially from January 1, 2026, through December 31, 2028, with an automatic two-year extension if agreed targets for restoring profitability are achieved.
According to BASF, the agreement is designed to address current challenges facing the chemical industry and focuses on improving competitiveness and adaptability at Ludwigshafen, BASF’s largest Verbund site. BASF said the framework supports structural changes while including provisions aimed at protecting employees from compulsory redundancies during the term of the agreement.
The agreement includes commitments related to investments at Ludwigshafen, with BASF stating it intends to invest around 2 billion euros annually at the site, including at least 1.5 billion euros, to support modernization and infrastructure development as well as the sustainable transformation of the site. BASF also outlined planned measures tied to simplifying the organization, increasing flexibility, using digitalization and artificial intelligence for productivity gains and focusing on cost optimization.
Working time management and personnel deployment are expected to be further developed with digital tools. The agreement also includes provisions related to employee qualification and development as well as health and quality-of-life initiatives.
“The new site agreement is the result of constructive negotiations between management and employee representatives,” said Katja Scharpwinkel, member of the board of executive directors and industrial relations director at BASF SE. “A period of at least three years without compulsory redundancies creates reliability for implementing our transformation projects.”
Sinischa Horvat, chairman of the works council at BASF SE, said the agreement includes concrete investments and protections for employees during the term of the agreement.
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