How can proven methods and installations be reconciled with modern demands and concepts of production and work environment? This is a question frequently faced by managers and investment decision makers. The have to decide whether it is worthwhile to modernise and expand existing plants or whether it is perhaps more efficient and ultimately more cost effective to build a completely new installation. And the continued use of old administrative and production buildings must be thoroughly evaluated – for example, will new insulation and a modern ventilation system in a building suffice or is it not worth the investment? The BASF investment plan contains a little of everything. In all its planning the chemicals giant places great importance on the needs of its employees. „We are constantly developing the Ludwigshafen site further so that it is always state-of-the-art and remains successful in international competition. In addition to investments in production, this involves modernization and targeted development of the structural infrastructure,“ said Dr. Bernhard Nick, Site Manager of the BASF Ludwigshafen Verbund site.
Many of the investments currently made by the Group in are part of investment planning within the scope of the ongoing Ludwigshafen Site Agreement. These include measures for further development of production. In total, BASF plans investments of 9 to 10 billion euros by 2015 to make to the site fit for the future. Of this total amount, €1.15 to 1.25 billion per year is to be provided for investment, modernization, and maintenance measures. The Group not only considers whether investments in modernization are economic but also takes account of new or modified conditions that ultimately make a totally new building more meaningful and cost effective. It also uses sustainable materials and energy efficient processes.
The Ludwigshafen-based company is responding to market demands by investing in plant expansions and new buildings. For example, BASF is building a second production facility for plasticizers. This will expand the production capacity to 200,000 tonnes per year. A new production facility for L-menthol is also being built. The aroma chemical is to be produced in Ludwigshafen from 2012 and will extend the citral value chain. Expansion of the insulation materials facility by 220,000 m3 to 1.52 million m3 is currently being completed. Modernization of the acetylene plant is also in progress. Incremental implementation of this project should be completed within the next four to five years.
Hiking Production Capacity to Meet Demand
Another important measure in Ludwigshafen is the expansion of the intermodal freight terminal. This should be completed by spring 2012. In the future, up to 500,000 loading units will be able to be handled annually compared to the current volume of 300,000 loading units. The terminal with 13 transshipment platforms and eight portal cranes will then cover 260,000 m2.
Center for work-life management for employees
BASF also firmly believes that working conditions for employees should be as pleasant and comfortable as possible. To this end, a center for work-life management is to be created. It will combine the various activities in the areas of career, family, health promotion and social counseling that were formerly scattered throughout the Group‘s premises. In addition, for example, the shower facilities will be modernized and a fitness studio and workshop offerings will be created. Moreover, the Group is expanding its social counseling to include nursing care counseling, which will help arrange nursing care services. „The demographic shift is creating new challenges for the ability of our employees to work. We are actively addressing these topics with an integrated concept that is equally responsive to different life situations,“ stated Hans-Carsten Hansen, President Human Resources. In addition, institutions such as the Feierabendhaus and day care offerings will be modernized and extended to make work as attractive as possible for the employees of the chemical company.
Further developments Expansion in emerging markets
BASF‘s sales to customers in emerging markets have almost tripled in the past 10 years and accounted for approximately one-third of total sales (excluding Oil & Gas) in 2010. In 2020, the company expects current emerging markets to contribute 45 percent to sales. Investments will boost the company‘s future growth. Between 2011 and 2020, BASF plans capital expenditures of €30 billion to €35 billion. More than one-third of this amount will be invested in emerging markets.
Facts for Decision Makers
Projects at a Glance
At Ludwigshafen work is currently proceeding on
- a second plasticiser production plant,
- a new L-menthol plant,
- expansion of the insulating material plant,
- modernisation of the acetylene plant,
- expansion of the Kombiverkehrsterminals,
- a work-life management centre,
- modernisation of the Bäder,
- a fitness studio with counselling and workshop offerings,
- extension of social counselling to
- include care counselling, and
- modernisation of Feierabendhaus and the day care facilities.
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