- BASF's strong vertical integration was a major strength, but due to the trade conflicts between the U.S. and China, part of BASF's markets eroded.
- Basic chemicals and materials, which made up nearly 40% of BASF's sales, came under a price war and hurt BASF's top and bottom line.
- China and the U.S. invest heavily in new polyamide capacities to become more independent from imports.
- BASF has reported very high depreciation and amortization expenses in the last 2-3 years, which could be a sign that capital wasn't employed efficiently.
For further details see:
BASF: A Long-Term Problem Within 2 Of Their Largest Segments