A MAJOR chemicals company with a base in Bradford has slashed its forecast for 2018 profits.

In a statement, German-based BASF, which has a site at Low Moor, said that it expects a “considerable” decline in earnings before interest and taxes (EBIT) before special items by 15 to 20 per cent on last year.

The chemical giant, which acquired the Bradford site, originally Allied Colloids, from Swiss-based Ciba back in 2009, previously forecast a 10 per cent fall.

“For EBIT of the BASF Group, the company continues to expect a considerable decline and for sales, a slight increase of up to 5 per cent,” said the statement.

BASF, based in Ludwigshafen on the Rhine, said the profits decline is “mainly attributable to the Chemicals segment”, but also pointed to the impact of trade conflict between the United States and China.

“...the low water level of the Rhine River in the fourth quarter of 2018 is expected to lead to negative earnings impacts of up to €200 million, higher than previously forecast,” the statement said.

“In the third quarter of 2018, the negative earnings impact from the low water level of the Rhine could be limited to around €50 million.

“Furthermore, BASF’s business with the automotive industry has continued to decline since the third quarter of 2018; in particular, demand from customers in China slowed significantly.

“The trade conflict between the United States and China contributed to this slowdown.”

The Financial Times reported that shares in BASF were down four per cent in early trade on Monday to €60.70, having slipped to their lowest point since February 2016 on Friday, when the warning was issued.

According to BASF, its Bradford site is one of the largest and most productive single site chemical plants” in the UK.

The firm employs more than 1,400 people in the UK, with around 575 working in Bradford.

The Low Moor site is a production hub for polyacrylamides, used as water-soluble flocculation aids in industrial and municipal wastewater treatment, enhanced oil recovery, mineral processing and papermaking.

Back in May, a new anionic polyacrylamide powder production facility was opened, helping to manufacture products for the oilfield market.

It took more than 120,000 man hours to construct the new facility, which BASF said had provided additional jobs at the site.

At the time Site Manager David Calder said the investment would bring “additional capacity” for products used in the oilfield and mining industry.

“It’s an important milestone that increases jobs and helps secure the future of our site in an increasingly competitive market,” he said.