BASF, the German chemicals groups, is to axe 3,700 jobs as part of the integration of Ciba.

The company plans to close 23 out of 55 of the Swiss Group’s production plants and will consolidate 36 of its 70 sales, administration and research sites into its own operations.

The cuts, which are expected to generate savings of about €400 million (£343.9 million) per year from 2012, are the equivalent to about 28 per cent of Ciba’s 13,000 strong workforce, with the majority to be implemented by the end of 2010.

The company has about 1,400 Ciba employees in the UK at four sites, three of which are production plants. The group would not say whether the UK sites would be hit by the restructuring.

BASF bought the Swiss group late last year in a deal worth about £3 billion and hinted of job cuts at the time, without giving any detail until today. The company has already begun talks with local employee representatives.

Dr Jürgen Hambrecht, chairman of BASF, said: “This is unfortunately not good news for some of our employees. But the combined businesses can be successful in the long term only if we optimize them and exploit the full potential for synergies. I promise all our employees that we will keep the period of uncertainty as short as possible and will make decisions in a fair and transparent way.”

The integration will cost €550 million in cash of which about €150 million will be incurred in 2009.

BASF said late last year that it was halting or scaling back production at nearly 200 of its own plants after a huge decline in demand.

The group said that a collapse in orders from industries including car makers, textile manufacturers and construction had forced it to shut 80 factories temporarily and reduce production at a further 100.

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