- Systems with 60 new jobs in Ludwigshafen are scheduled to go into operation in 2026
- Continued annual investments of around two billion euros in the Ludwigshafen site
At the beginning of March, BASF announced that it would invest in two additional plants for the production of menthol and linalool at the Ludwigshafen Verbund site. Today, on June 21, 2023, the ceremonial laying of the foundation stone took place. Both plants are scheduled to go into operation in 2026. The reason for the investments is the growing demand on the global market for fragrances and flavorings. The decision to build the plants in Ludwigshafen proves the competitiveness of the Verbund site. “These investments are a visible sign of how we want to restructure the product portfolio of the Ludwigshafen site with a stronger focus on sustainable and therefore competitive product lines,” says Dr. Uwe Liebelt, President European Site & Verbund Management. “This is how we close Ludwigshafenthe leading location for sustainable chemical production in Europe,” Liebelt continued.
The additional facilities will expand and diversify the citral value chain of the global Aroma Ingredients business in Germany and Asia, providing growth opportunities for customers.
Citral is an important precursor for the production of menthol and linalool. Both products are used in a variety of applications. Menthol provides a fresh taste in toothpaste, but is also used in personal care products. In the pharmaceutical industry, menthol is primarily known as an active ingredient in cooling gels, creams and sprays to relieve pain or cold symptoms or to make breathing easier. Linalool is a lavender flavoring substance, one of the largest areas of application is in detergents. In addition, it is a popular ingredient in various household and personal care products as well as perfumes. It can also be found as a flavoring agent in chocolate or spice complexes.
In combination with the investments in Ludwigshafen, a new world-scale citral plant will be commissioned at the BASF Verbund site in Zhanjiang, China. This enables the expansion of production in Ludwigshafen. The citral facility in China will strengthen BASF’s position in key growth regions and increase production of a wide range of fragrances, flavors and other downstream products worldwide. This investment increases BASF’s annual capacity for citral to 118,000 tons.
Synergy and strong commitment to change in terms of sustainability
The full integration of the new plants into the Verbund sites in China and Germany enables BASF to use resources optimally and generate synergies. The integration of the new plants for the production of menthol and linalool in the Ludwigshafen site benefits from existing network structures and advanced production technologies. Every year, BASF invests a total of around two billion euros in the Ludwigshafen site.
“This is a significant investment in our manufacturing capabilities to meet growing demand in the global flavors and fragrances market. The Ludwigshafen site enables Aroma Ingredients to leverage the strong Verbund structure and advanced production technologies to enable our customers further growth with high-quality and sustainable fragrances and flavorings,” said Thilo Bischoff, Senior Vice President, BASF Aroma Ingredients. “After the Once completed, we will continue to expand our position as a leading partner and manufacturer of ingredients for the fragrance and flavoring industry, enabling us to meet the current and future sustainability requirements of our customers,” Bischoff continued.
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