Huge Cost Overruns Make BASF Decide to “Stay Away” from Europe

Huge cost overruns make BASF decide to “stay away” from Europe The skyrocketing gas prices in Europe have made it difficult for many industrial companies to maintain. Recently, BASF officially announced that it would scale down its production in Europe as soon as possible and permanently. The reason it gave was the gas crisis in Europe and overly strict EU industry regulations. BASF’s natural gas costs have increased significantly this year. Faced with a huge cost pressure of about RMB 15.8 billion, BASF finally could not afford it and chose to stay away from Europe. Under the energy crisis, companies are struggling to support themselves. The European chemical industry is now facing a huge impact. This is mainly due to the serious spike in energy costs in Europe. BASF is not the only one that has been badly affected. Many European companies have had to cut production in order to struggle in this situation. For example, in Alcoa’s aluminum smelter in Norway, production was cut by one-third of the original. Total Energy and the German plant Crestron have even announced a direct shutdown. It can be seen that European companies are now walking on thin ice. As a result, many […]