Chemical giant BASF warns permit delays risk jobs at Finnish plant

A logo of the chemical company BASF is seen on a large storage container at the main plant. Uwe Anspach/Deutsche Presse-Agentur GmbH/dpa

Jobs at German chemical company BASF's plant in Harjavalta, Finland, are at stake due to repeated delays and a court impasse over obtaining permits from authorities.

BASF warned on Thursday that it is now considering indefinite layoffs of all employees at the plant if the permitting issue is not resolved.

The chemical company plans to produce precursor chemicals for batteries at the plant, but efforts to win regulatory approval in Finland in order to commission the facility have been dragging on for years.

Most recently, a Finnish court suspended an environmental permit granted at the end of 2023. BASF said in a press release that the court decision will have a further significant impact on operations on site.

According to a company spokesman, it is not possible to conduct test production runs or other work at the plant without the permit.

According to BASF, the further postponement and uncertainty will have long-term financial consequences, and the company may be forced to adpt its operations in Harjavalta and reduce costs.

BASF received initial approval from the authorities in 2020.

According to the BASF spokesman, that decision and other authorizations from Finnish officials have been repeatedly challenged in court over the past three and a half years.

So far, BASF has invested hundreds of millions of dollars in the facility. Should the company receive final approval for long-term use, further investments would be due.

© Deutsche Presse-Agentur GmbH