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BASFY to Exit Hydrosulfites Business and Shut Production Facility

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Key Takeaways

  • BASF will close its Ludwigshafen site and exit the hydrosulfites business.
  • The move is part of a strategic review to optimize BASF's production setup.
  • 65 employees will be supported with new roles as BASF phases out supply.

BASF SE (BASFY - Free Report) announced it will exit the hydrosulfites business and close the production facility in Ludwigshafen as part of an ongoing strategic review of the production setup at the site.

The company has decided to phase out the supply of Hydrosulfite F, HydroBlue 90, HydroBlue 92, Hydrosulfite Evo, Adlite and Blankit. Hydrosulfites are primarily used as reducing agents in the textile dyeing process and bleaching additives in pulp and paper manufacturing.

The move reflects BASFY’s commitment to long-term growth and value creation potential. Around 65 employees currently working in the hydrosulfites business will be supported in finding new positions within the BASF Group. While phasing out from the hydrosulfites business, BASF will closely work with its employees and customers to ensure a responsible transition.

The closure of the Ludwigshafen facility underscores the company’s broader strategy to streamline operations and optimize its portfolio. Focusing on profitability and long-term value creation will safeguard the competitiveness of the business in this challenging economic environment.

BASFY’s shares have lost 5.3% over the past year compared with the industry’s 27.3% decline.

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BASFY’s Zacks Rank & Key Picks

BASFY currently has a Zacks Rank #5 (Strong Sell).

Some better-ranked stocks in the Basic Materials space are Methanex Corporation (MEOH - Free Report) , Carpenter Technology Corporation (CRS - Free Report) and The Mosaic Company (MOS - Free Report) . MEOH and CRS sport a Zacks Rank #1 (Strong Buy) each, while MOS carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for MEOH’s current-year earnings is pegged at $3.72 per share. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with an average surprise of 83.18%.

The Zacks Consensus Estimate for CRS’ current fiscal-year earnings is pegged at $9.51 per share, indicating a 27.14% year-over-year increase.Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with an average surprise of 8.38%. CRS’shares have surged 46.7% in the past year.

The Zacks Consensus Estimate for MOS’ 2025 earnings is pegged at $3.17 per share, indicating a rise of 60.10% from year-ago levels. The company’s earnings beat the consensus estimate in one of the trailing four quarters while missing it in the rest. MOS’ shares have gained 32.7% in the past year.

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