Hard times for BASF

The German financial daily Wirtschaftswoche published a long article about the chemistry giant BASF. When Kurt Bock moved into the lead of the Ludwigshafen-based group, the outlook was far different from the current one. For instance, Bock predicted that the group would achieve €100bn in revenue by 2020. In fact, expectations are proving unrealistic, due to oil price drop, slow BRIC growth and the recent explosion in Ludwigshafen, which has caused many supply issues. The 2016 results, expected in February, are likely to be the worst in BASF’s history. The company revenue will be approximately €55.7bn vs €70.5bn in 2015 and €74.3bn in 2014. 2017 brings new challenges, which will impair recovery, including agrochemicals consolidating thanks to the Bayer-Monsanto and Syngenta-Chemchina deals, the Dow-DuPont deal creating a new chemistry giant and Saudi Aramco reportedly intending to transform into a chemical group, reducing its dependence on oil. On the other side 2017 will be also the year of the integration of Chemmetal, acquired last June for $3.2bn. (Source Wirtschaftswoche)