BASF announces plans to close Paisley site

On October 22, 2013 BASF informed employees about its intention to close its pigment plant in Paisley, Scotland, by the second half of 2015.

The proposed closure will affect 141 employees currently working at the BASF Performance Products site in Hawkhead Road, Paisley. Consultations with trade union and employee representatives will begin this week.

The Paisley site manufactures Azo pigments. The global market for these pigments is shrinking. Increasing manufacturing capacities and the entry of new competitors have changed the business environment significantly.

A large part of Paisley's products are used for printing publications and the once high-volume printing industry is shrinking as new technologies reduce demand for pigments.

BASF is adapting its Azo pigment business to these changed market conditions by restructuring measures, including consolidating production at cost competitive sites. It will stop producing Azo pigments for the printing industry and focus on innovative products, mainly for the plastics industry.

The Paisley site, which BASF acquired in 2009, is not cost competitive. Restructuring programs over the last three years have succeeded in reducing fixed costs, but the rapidly changing market situation resulted in unsustainable manufacturing cost at the site.

Azo pigments are insoluble colorants which can be produced via water-based chemistry. They are used in small quantities in printing inks, household plastic articles, carpets and technical fabrics, wood and architectural coatings and automotive coatings.