fbpx
Published in Manufacturing
BASF to close Muskegon-area facility by 2022 COURTESY PHOTO

BASF to close Muskegon-area facility by 2022

BY Wednesday, October 14, 2020 02:30pm

MUSKEGON TWP. — Multinational chemical producer BASF announced this week that it’s closing its herbicide production facility in Muskegon Township by 2022.

The facility — which BASF acquired from Bayer CropScience LP in 2018 as part of Bayer’s mega-merger with Monsanto Co. — produces non-selective herbicide glufosinate-ammonium (GA) and its intermediates. BASF is closing a similar facility in Germany as it consolidates operations at other plants in the U.S., Canada and Germany.

“This step is part of further developing the (glufosinate-ammonium) business long-term to strengthen BASF’s competitive positioning in the non-selective herbicide segment to better serve our customers,” Vincent Gros, president of BASF’s Agricultural Solutions division, said in a statement. “We remain committed to the GA product line, as the recently announced acquisition of the Glu-LTM technology from AgriMetis LLC shows.”

The two plant closures are expected to affect roughly 100 employees, while more detailed plans for the Muskegon site will be finalized in the coming months. A BASF spokesperson referred to the company’s press release when asked for further comment.

Jim Edmonson, president and CEO of Muskegon Area First, called the announcement “not totally surprising,” citing the company’s “financial position.” Edmonson expects more details from the company later this week.

Germany-based BASF’s most recent quarterly sales fell 5 percent while heavy write-offs caused a $3.1 billion net loss in the third quarter. Reuters reported that the company’s core operating profit could fall by up to 35 percent this year. The company said in a statement this month that it “expects pressure on margins to continue, especially for basic chemicals, which will be partially offset by fixed cost savings.”

BASF Agricultural Solutions US LLC is listed as the property owner of 1740 Whitehall Road, which includes 16 buildings totaling nearly 184,000 square feet. Most of the buildings on the property were built in 1976, with one 51,000-square-foot manufacturing building added in 1997.

Read 3940 times Last modified on Thursday, 15 October 2020 07:29
SUBSCRIBE TO MIBIZ TODAY FOR WEST MICHIGAN’S FINEST BUSINESS NEWS REPORTING >