BASF shifts focus from Europe due to high energy costs

https://www.reuters.com/markets/europe/basf-says-european-operations-need-be-cut-size-permanently-2022-10-26/?fbclid=IwAR201JWfyVxsycT1fsgZufnd3w-TBTcyJft0a2fLOHq8PIDIeEVPcBRc7os

Cost cuts coming in Europe and likely to be permanent. Later report says most will be done by attrition. Retiring workers won’t be replaced. Surplus workers will be moved into their positions.

“The cutbacks at home contrast with a 10 billion euro chemical complex that BASF plans to build in Zhanjiang, southern China, to run entirely on renewable energy, as it banks on booming Asian markets and looks to reduce reliance on Europe.”

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Supply side econ in central Europe.

Building a plant in China is good for business. Centering your business in China puts you under Xi’s rules while the Chinese government will give water and fuel to Chinese corporations first.

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