Cost-Saving Measures Take Hold for BASF

BASF is the world’s largest chemical producer by volume. Of its six reportable segments, four represent the company’s core businesses and rely on its “Verbund” strategy. That strategy seeks to produce chemicals at the lowest cost through power savings and by recycling reaction byproducts into downstream production. Still, as a Europe-based producer, BASF faces higher energy and feedstock costs relative to US producers. These higher costs are due in part to the Russia-Ukraine war, which cut Europe off from cheap Russian fuel.