WEST MEMPHIS, Ark. (KAIT) - BASF will close its Northeast Arkansas manufacturing plant by the end of next year.
Approximately 34 positions at its West Memphis factory will be phased out with the cessation of operations in December 2021. Layoffs will continue through the decommissioning process, according to a Wednesday news release.
BASF said it would provide severance and outplacement services to employees.
The company pointed to the “current competitive environment coupled with decreased demand” as the reasons for its decision.
“This is a difficult situation as the West Memphis team has worked tirelessly to improve our operations and quality of our products,” said Steve Maccani, site manager for BASF’s West Memphis facility. “Our priorities continue to be the well-being of our employees and maintaining safe operations during the closure process.”
The factory produces rheology modifiers, wetting agents, and polyurethane resins used in the ink industry.
According to the news release, BASF will relocate rheology modifiers and wetting agents to alternative production locations.
Final decommissioning and demolition are expected through 2022.