DyStar to ‘diversify out of Europe’, beginning with Ludwigshafen
Singapore-headquartered specialty chemicals company DyStar has announced its decision to "restructure" its indigo dye-manufacturing facility in the city of Ludwigshafen, Germany, as part of phased efforts to “diversify the production activity out of Europe”, in the words of chief commercial officer, Eric Hopmann.
DyStar notably inherited the Ludwigshafen site from BASF, whose founder pioneered indigo research, development and manufacturing there as far back as the nineteenth century.
The move comes in the wake of unfavourable operational conditions, such as inflation and higher energy costs, as well as market shifts over the past decade, explained group managing director and president, Xu Yalin.
Mr Xu called the changes an important strategic move for the business, which he said will now focus on developing "key emerging markets" with an eye to driving sustainable productivity and improved cost efficiency. Immediate changes, according to Mr Hopmann, include a “reduction of manpower” at the plant.
The group affirmed its commitment to supporting all those impacted with respect and dignity throughout the restructuring, including providing severance packages and working with local authorities and human resource specialists to support affected employees and their families over the period.
Disruptions to the fulfilment of existing orders are not expected and all outstanding commitments will be completed as a priority, it added.
Speaking directly to the company's customers, Mr Hopmann said they "could be further assured of undisrupted supply, hence production should not be affected as we will work closely to meet their specific requirements.”
