Wedoany.com Report on Feb 13th, Chemical company BASF is implementing a structural adjustment to its Global Business Services (GBS) division, aiming to enhance cost-effectiveness and service consistency.
The company plans to consolidate finance and human resources services into a newly established global center in India, while supply chain-related services will be integrated into the existing center in Kuala Lumpur, Malaysia. Business activities requiring close alignment with production operations will continue to be conducted at the regional or local level. This adjustment is part of BASF's overall transformation strategy to build an integrated service portfolio, promote standardization and automation, and fully leverage cost-effective locations.
BASF's Global Business Services division currently employs approximately 8,500 people. Through three regional centers in Berlin, Kuala Lumpur, and Montevideo, it provides services such as finance, logistics, human resources, communications, regulatory & intellectual property, and environment, health, safety, and quality to global business units.
Dr. Dirk Elvermann, Chief Financial Officer and Chief Digital Officer of BASF SE, stated: "With this initiative, we plan to systematically strengthen the Global Business Services division to support BASF's strategy with the most competitive service structure. Consolidating services into scalable global centers aims to become the cornerstone of reliable internal service delivery while ensuring long-term cost competitiveness."
The existing regional centers in Berlin, Kuala Lumpur, and Montevideo will continue to provide integrated services at the regional level. Tobias Dratt, President of Global Business Services, said: "Global Business Services has always maintained an entrepreneurial spirit, constantly seeking clever solutions, adapting quickly to changes, and supporting BASF's development with a strong service mindset. As we move into the next phase, early and transparent communication is crucial for us. The upcoming project presents an opportunity to build a more agile and practically aligned organization, thereby continuously creating value for BASF's business."
Currently, further details of the transformation plan are being developed. BASF stated it will ensure timely involvement of relevant employee representatives in discussions in accordance with local laws and regulations.
