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Economic advantages of the Verbund |
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Calculations show that the Verbund saves BASF about EUR 500 million each year at the company’s Ludwigshafen site alone.
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The economic advantages of the Verbund are clear when the costs associated with production in Ludwigshafen, Germany are compared with the costs that would arise if the same amount of production were allocated to 70 separate companies each 100 kilometers apart. Such a setup would correspond to the structure of a typical mid-sized chemical company.
When comparing the production costs of such a setup with those of the Verbund in Ludwigshafen, the economic advantages become clear: In Ludwigshafen, about EUR 300 million can be saved through the Logistics Verbund. Raw materials and feedstocks are transported through a dense network of piping rather than having to be sent long distances by road, rail or sea. Additional costs for handling and storage can also be eliminated.
The advantages of the Energy Verbund can be valued at about EUR 150 million - the main reason being the ability to transfer excess heat to other plants for use in production.
The cost savings from sharing such facilities as the fire department, emergency medical services, catering and wastewater treatment facilities amount to about EUR 50 million.
We estimate that worldwide we achieve total annual cost savings of approximately EUR 800 million by integrating plants and processes vertically and horizontally in dozens of value-adding chains at our Verbund sites.
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