BASF Corp. to move Washington Borough operation to Geismar, Louisiana in 2014

BASF Corp. plans to close its Washington plant and move operations to Geismar, La., by late 2014, part of an effort to centralize functions.

The pending move will mark the second Warren County division of BASF to shutter. A Belvidere manufacturing facility closed last year and moved business to Canada.

BASF's chemical processing plant at 2 Pleasant View Ave. employs about 60 workers.

Site manager Mike Barone said workers will have opportunities to relocate to Louisiana or elsewhere within BASF North American operations. Some will be eligible for retirement by late 2014, he said.

Barone said employees were disappointed but not surprised to learn of the move in recent weeks because the company had discussed the potential to relocate.

"It wasn't sprung up on them at the last minute," Barone said Wednesday. "We've been studying this possibility the last several years."

Barone said the southeast Louisiana site is closer to raw materials the company needs to run the Washington plant, which makes ingredients that go into cleansing products like soap and shampoos. The local operation serves the consumer and pharmaceutical industries.

Many petrochemicals that form its products are either made at BASF's Geismar division or are available nearby, given that region's proximity to the Gulf of Mexico and oil refineries.

The company is building a new plant in Geismar, about 25 miles south of Baton Rouge, to house the current Washington business. It is set to open in early 2015.

The Geismar campus is based on larger property and contains room for expansion, Barone said. The Washington operation occupies most of its 15 acres.

Barone added the move is not a reflection of the productivity of the Washington plant, which has operated since 1961 and was bought by BASF in 1970. The local site employs mostly production workers plus engineers.

"We've had a strong team and a safe and efficient operation for 50 years," Barone said.

Express-Times File PhotoScott McDonaldMayor Scott McDonald said the borough was prepared for the announcement because officials knew of BASF's interest in centralizing.

Officials will work with company in the coming years to plan a transition for the property, he said. McDonald prefers a warehouse or distribution center occupy that site, just east of Route 31 near the Washington Township border, but will consider other options.

"We'll work with (BASF) to make sure the site is clean and make it more marketable not only for them but for us," McDonald said.

Sandi Cerami, executive director of the Washington Business Improvement District, said the business community will recover from the eventual departure of BASF.

She said the loss of tax revenue will hurt but employment impact is not as severe, given that many BASF employees commute from out of town.

"Of course, it's concerning," Cerami said. "No one wants to see a ratable leave the town. At the same time, I'm not going to overreact."

The three-year schedule for BASF's relocation gives the borough time to recruit new business, she said.

"We're going to take the lemons and do what we can to make lemonade and sweeten the mix here," Cerami added.

BASF's North American division is based in Florham Park, N.J., and is affiliated with BASF SE in Germany. The North American division employs about 16,400 and recorded sales of $17.7 billion in 2010, according to the company web site.

Barone said BASF will help employees determine their options in the years ahead. He estimated 40 percent of the local staff has 20 or more years of experience and understands that some may not want to relocate.

"No one will be forced to go to Geismar," Barone said