BASF Strengthens Global Business Services with New Global Hubs
German chemical giant BASF has announced the launch of a comprehensive transformation process in its Global Business Services (GBS) organization, which serves its operations worldwide. The move is part of the company's goals to increase cost competitiveness, strengthen standardization and make service delivery more efficient.
German chemicals giant BASF has announced a comprehensive transformation in its Global Business Services (GBS) organization, which supports operations worldwide. The move is aimed at strengthening cost competitiveness, enhancing standardization, and making service delivery more efficient.
Finance and Human Resources services within GBS will be consolidated at a new global hub to be established in India. Similarly, supply chain-related services are planned to be centralized at the existing center in Kuala Lumpur, Malaysia. Critical services requiring operational proximity will continue to be managed at regional or local levels.
Dr. Dirk Elvermann, Chief Financial Officer and Chief Digital Officer of BASF SE, stated that this step is taken to support the company's strategy with the most competitive service structures. Elvermann said, "Consolidating services in scalable global hubs will form the foundation of reliable business service delivery while ensuring long-term cost competitiveness."
GBS President Tobias Dratt emphasized that the transformation provides an opportunity to create a more agile and purpose-driven organization, adding that the project will be conducted with transparent communication and within the framework of local regulations.
BASF's GBS organization serves approximately 8,500 professionals in areas including Finance, Logistics, Human Resources, Communications, Regulatory Affairs, and Environment, Health, Safety and Quality (EHSQ). The existing regional centers in Berlin (Germany), Kuala Lumpur (Malaysia), and Montevideo (Uruguay) will continue to support operational continuity with regional specialized services despite the transformation process.
This structure is regarded as part of a broader transformation initiative aimed at making BASF's global service network more flexible and cost-effective.
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