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Germany's BASF CEO: Low river levels are preventing BASF from fully supplying some products.

The low water levels of the Rhine River have made it impossible for a German chemical company, BASF, to supply certain products, according to CEO Markus Kamieth. A prolonged drought is threatening to harm Germany's economy.

Kamieth stated that although the drought has not had a significant impact on financial results, the risk that production will be disrupted is increasing every week.

Despite the challenges, 'Kamieth' said that the situation was under control. He added that the group had been'significantly better prepared for extreme weather conditions than in 2018 when the Rhine water levels were depleted due to?drought.

"Everything remains within manageable boundaries and, in comparison to?2018 this is a much smaller challenge for BASF," Kamieth said on the sidelines at the groundbreaking ceremony for an expansion of a rail and road terminal at the company's headquarters in Ludwigshafen.

On Monday, the water level gauge at the Chokepoint of Kaub near Koblenz was around 6 cm (2.36 inches), well below the previous low of 25 cm (9.84 inches) set in 2018.

Early August, analysts said that the Rhine's record low levels could halt German growth and drag Europe's largest economy back to stagnation. This is just when it was showing signs of a long awaited recovery.

In order to maintain supplies at its main plant in Ludwigshafen - which gets about 40% of its raw materials from the river -?the company relies more and more on trucks, rail transport and low water vessels. Reporting by Patricia Weiss, Writing by Friederike Weine and Linda Pasquini, Editing by Ludwig Burger & Helen Popper

(source: Reuters)