BASF defies regional production shifts and rising fixed costs

The global shifts in automotive production—from the USA and Europe to China—hardly concern BASF. Markus Kamieth, a member of the board, assures that the company's global presence provides a robust buffer against such shifts. More important is the overall production trend, which did not develop optimally in the third quarter and is expected to remain challenging in the fourth quarter. However, the opening of a new site in China brings with it increasing fixed costs. Dirk Elvermann forecasts a low triple-digit million-euro burden for the coming year. For 2025, the company anticipates an additional expenditure of around 100 million euros per quarter, which will particularly impact the chemicals division. In the monomers segment, the situation appears somewhat more positive. Kamieth reports a margin expansion in the ammonia value chain as well as in the PA66 and PA6 value chains in the third quarter. These developments contribute to a positive margin trend, although stability in a cyclical business remains uncertain. Regarding potential changes in tariff policy between the USA and China, BASF sees itself well-positioned. Kamieth emphasizes that the strategy of being present in key markets largely protects the company from tariff changes. Nevertheless, an increase in tariffs could slow global economic growth, posing a challenge for the entire industry.