BASF announces vitamin plant closure
About 33 jobs will be lost as part of the plans that will see the site in Wilmington, which supplies formulated vitamin C and B products for dietary supplements, closed by 31 March 2009.
The closure will bring a complete end to the company’s presence in manufacture of formulated vitamin B products, as well as other changes to its national operations, in a bid to ensure greater cost efficiency.
BASF says that production of itsFreshSeal polymer-based coatings for vegetables and fruit, which are also produced at the site, will be transferred to another plant.
Sustainability
Simon Medley, vice president of BASF’s care chemicals and formulators regional business, said the decision had been taken by the company due to high raw material costs that was making manufacture of the products unsustainable.
“We regret the impact this decision may have on these employees and their families, especially at this time of year,” stated Medley. “The decision is in no way a reflection of the hard work, dedication and professionalism of the colleagues at this facility.”
According to the manufacturer, the site has been in operation since 1985 and accounts for a total US workforce of 15,000 staff.
Competition
The decision to close the plant comes at a time of increasing competitiveness for vitamin manufacturers.
Earlier this year, DSM said it had been forced to play up the quality of its western derived vitamin C to offset cost concerns.
The ability of DSM's Chinese competitors to outperform it in price prompted the multinational to attempt to play up the quality of its offerings, a move in line with a strategy that has seen the company develop Quali-Blends.
These blends are an umbrella concept that DSM claims can ensure its ingredients are produced to high quality levels.
