Frankfurt - Shares in BASF AG jumped more than six per cent in early trading Thursday after the world's biggest chemical company stepped up cost-cutting measures in the wake of a fourth-quarter loss and a bleak forecast for the coming year.

German-based BASF booked a fourth-quarter net loss of 313 million euros (398 million dollars) with the company warning that it faced a fall in sales as the global recession gains momentum in the group's key export markets.

Releasing the results, BASF chief Juergen Hambrecht said: "2009 will be a year of unprecedented challenges.

"The situation in our sales markets is worsening and inventory levels in the value chain are still too high," he said.

"Demand for chemical products has not picked up since the start of 2009," Hambrecht added.

With this in mind, the company said it was stepping up closures of less-profitable plants in Asia, Europe and the US, aimed at cutting its worldwide 97,000-strong workforce by 15,000.

BASF shares were trading 6.5 per cent at 22.44 euros following the release of the group's results. (dpa)