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Chemical Giant BASF Threatens To Leave Germany Over Green Energy Costs

Focus Magazin

The chemical company BASF has threatened with a partial relocation of its production abroad if it will no longer be exempt from green levies on electricity.

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BASF’s CEO Kurt Bock demanded from the government to maintain existing exemptions for energy-intensive industries. The incoming grand coalition of Christian Democrats (CDU) and Social Democrats (SPD) are reconsidering the exemptions for the multi-billion industry.

According to the head of the chemical giant, BASF fears additional costs of nearly 400 million Euros alone at the production site in Ludwigshafen. He did not provide any further information about the period during which this sum would have to be paid. He said that the additional costs are threatening the “competitiveness of the location”.

A few months ago, BASF decided to build an ammonia plant in the USA and not in Germany because of cheaper energy prices in North America. Bock had already intervened in Germany’s energy debate several weeks ago and indirectly threatened the relocation of BASF’s production.

Translation Philipp Mueller

Focus, 10 November 2013