BASF Cutting US Jobs in Solenis Merger
BASF Corporation is eliminating 50 jobs as it shuts operations in the environs of Charlotte, North Carolina, USA, and merges its paper wet-end and water chemicals business into US specialty chemicals producer Solenis.
The BASF hygiene products unit in Steele Creek will cease operation at the end of December, resulting in the loss of 27 jobs, BASF said in a Worker Adjustment and Retraining Notification Act (WARN) notice filed with the stat government. Functions within this unit, ranging from laboratory technicians to account managers, will transfer to group facilities in Houston.
The German group is also shuttering its paper and water chemicals business in Steele Creek and combining its ‘operations with Solenis. Here, too, all 26 jobs will either be cut or transferred to the US company. Affected positions are said to range from account managers to service technicians.
Including on-site contractors, BASF employs more than 400 people in Charlotte. Its local technical center houses a number of business and administrative functions, including customer care, supply chain, R&D and regulatory. Local newspaper reports said the sites will remain open, independently of the business units being shut down. Where possible, workers are being offered jobs at other corporate locations.
The deal between BASF and Solenis, announced in May, is due to complete on Dec. 31, creating what the merger partners said will be a customer-focused global solutions provider with pro-forma sales of around €2.4 billion and around 5,000 employees.
BASF will hold a 49% minority stake in the enlarged company, which will be based at Wilmington, Delaware, USA, and continue to operate under the Solenis name. Funds managed by private equity investor Clayton, Dubilier & Rice will hold the 51% majority.
The merged company’s portfolio will cover the entire range of functional and process wet-end chemicals, solutions for the water cycle in paper mills, as well as comprehensive service capabilitiies.