(CNN) -- German chemicals giant BASF announced Monday that it plans to cut some 3,700 jobs by 2013 as part of a restructuring plan.
BASF Chairman Jürgen Hambrecht said company will restructure itself in a "socially responsible" manner.
The company added that it will integrate Ciba Holding, which it acquired in April 2009, into its corporate structure.
The second-largest chemical company in the world, BASF's portfolio includes chemicals, plastics, agricultural products, crude oil and natural gas.
In a statement, BASF said it is reviewing strategic options -- including restructuring, sale or closure -- for 23 of the 55 former Ciba production sites worldwide.
"Decisions will be made about these sites by the end of the first quarter of 2010," the statement added. "The remaining 32 production sites are to be optimized as part of BASF's global production network or restructured."
BASF hopes its plan, which will result in the loss of approximately 3,700 positions by 2013, will save the company an estimated €400 million ($555 million) annually.
With around 97,000 employees worldwide, the German company said it aims to implement the restructuring measures in a socially responsible manner and has started talks with local employee representatives.
"This is unfortunately not good news for some of our employees," said BASF Chairman Jürgen Hambrecht.
"But the combined businesses can be successful in the long term only if we optimize them and exploit the full potential for synergies.
"I promise all our employees that we will keep the period of uncertainty as short as possible and will make decisions in a fair and transparent way."
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