The world's biggest chemical company, BASF, said on Wednesday it would cut its production worldwide and suspend operations at 80 plants, affecting 20,000 workers.

BASF has a manufacturing plant at Altona in Melbourne and employs more than 300 people in Australia and New Zealand, but it was not immediately clear whether these operations would be affected.

The company's website says BASF's customers in Australia and New Zealand are from the agricultural, construction, petroleum refining, automotive and chemical industries.

"BASF is taking measures to avoid the creation of overcapacities as a result of a massive decline in demand," the company said in a statement.

The group "is temporarily shutting down around 80 plants worldwide. In addition, BASF is reducing production at approximately 100 plants," following decisions that had already been revealed in part.