BASF exits lysine business; shuts Korean plant
Fri Mar 30, 2007 2:28am ET
FRANKFURT, March 30 (Reuters) - German chemicals group BASF is discontinuing production of lysine, an amino acid in protein for animal feeds, and closing a plant in South Korea with 180 staff as part of a restructuring, it said on Friday.
BASF said in a statement the site at Gunsan, South Korea, had a current lysine capacity of 100,000 metric tonnes per year and that it would immediately start negotiations with employee representatives there.
"Over the last three years, BASF undertook an intensive cost reduction programme at the Gunsan site. However, due to rising raw material costs, overcapacities and a high dependency on exports, the business is no longer sustainable," it said.
BASF said it remained committed to South Korea, where it began operations in 1954 and employs about 1,200 people.
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