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The long drought this year continues to be a problem at BASF's main plant, which has suspended production of plastic, toluene diuocyanate (TDI) in Ludwigshafen, due to lack of water in the Rhine. TDI is a precursor to plastic production.
"The restart of the plant depends on the future development of the Rhine level," said the company. Although BASF uses all alternatives – pipeline, truck and train – not all raw materials can be transported to Ludwigshafen. On the main site, BASF transports 40% of the goods by boat.
The TDI plant of one billion euros has only been operational since July 2018. The construction of the largest project to date since the last 153 years of BASF had fallen far behind schedule and was much more expensive than expected.
The low water level hit the bottom line this year, it was said two weeks ago. In the single quarter, the company recorded a lower operating result of about 50 million euros due to higher transportation costs and production losses.
Due to lack of water, BASF chairman Martin Brudermüller called for a discussion on the consequences. "If less water enters the water, only a smaller exit may require locks and dams," he told Tagesspiegel newspaper. "We need to discuss such investments in infrastructure," said the chief in office since May. The company has never experienced such a summer in the history of BASF.
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