BASF Sells Silicate Arm to US Group PQ as CoreShift Cost Drive Targets 20% Fixed-Cost Reduction

BASF shares climb 16% YTD amid strong chemicals momentum; launches CoreShift cost-cutting plan to reduce fixed costs 20% by 2029, sells silicate unit to PQ.

BASF shares have climbed more than 16% since the start of the year, aided by strong momentum in its core chemicals business and a raft of restructuring initiatives that have drawn praise from analysts. The stock recently changed hands at around €52, having touched a 52-week high of €54.70, though technical indicators flag an overbought condition with the Relative Strength Index oscillating between 84.5 and 89.5 points.

Germany’s largest chemical group has now signed an agreement to offload its silicate operations at the Düsseldorf/Holthausen site to US-based specialty chemicals producer PQ. The transaction, subject to antitrust clearance, is expected to close in the second half of 2026. The disposal is part of a broader portfolio clean?up as BASF pivots toward higher-margin activities.

Alongside the asset sale, the company has launched “CoreShift”, a new wave of the “Winning Ways” strategy. The programme encompasses transformation projects across the four core segments – Chemicals, Materials, Industrial Solutions, and Nutrition & Care – which together generate roughly €40bn in annual revenue. The central target: reduce cash?effective fixed costs by up to 20% by 2029 compared with 2024 levels. Execution is likely to trigger further headcount reductions.

The new “Core Transformation Office”, led by Julia Raquet reporting directly to chief executive Markus Kamieth, will oversee the initiative. This builds on an earlier cost?saving plan that aimed for €2.3bn in annual efficiencies by the end of 2026. By March of this year, BASF had already realised €1.9bn of those savings.

Price action has been further supported by a DZ Bank upgrade that reiterated a buy recommendation and lifted its price target, citing an ongoing operational recovery. Management has also signalled confidence through a recent buyback of nearly one million shares. For the current financial year, BASF continues to forecast EBITDA before special items in a range of €6.2bn to €7.0bn. The first quarter delivered €2.4bn on the back of solid volume growth, particularly in China.

Investors will get the next reality check in July, when the group publishes its second?quarter results. While the market appears to be pricing in the restructuring success, the true test will be whether the cost reductions can be sustained through 2029 without hampering the top line.