BASF’s big Asia-Pacific footprint

To achieve €25 billion on sales in the region by 2020, BASF’s Asia-Pacific strategy “grow smartly” outlines investments of €10 billion, around 9,000 new jobs and savings of €1 billion.

Around one-quarter of the chemical firm’s global R&D will be conducted in Asia-Pacific by 2020, to develop innovative solutions that address the region’s challenges of resource efficiency, food and nutrition, and quality of life.

“In the next decade, Asia-Pacific will face many challenges, while remaining the fastest growing market for the chemical industry. With our Asia-Pacific strategy, we are positioning BASF as the leading provider of sustainable solutions for the Asia Pacific region,” said Dr. Martin Brudermüller, vice chairman of the Board of Executive Directors of BASF SE.

“Based on our strong global R&D network, we will considerably strengthen our innovations capabilities in Asia-Pacific, enabling us to better serve our customers in all industries in the region,” he said.

BASF estimates the cumulative annual growth rate (CAGR) for real chemical production through 2020 for Asia-Pacific at 6.2 per cent, well above the world average of 4 per cent.

According to its strategy, BASF intends to grow profitably at least two percentage points above chemical production to achieve sales of €25 billion in Asia-Pacific by 2020.

By 2020, BASF plans to reach a total of around 3,500 R&D personnel in the region, up from around 800 in 2012. BASF is also establishing research facilities in the areas of electronic materials, battery materials, agriculture, catalysis, mining, water treatment, polymers and minerals.

BASF’s growth and contribution to Asia-Pacific will also develop together with changing economies and demographics. The company said it would explore untapped markets in Mongolia, Laos, Myanmar, and Cambodia.

It added that by 2020, BASF aimed for local production of approximately 75 per cent of the products it sells in Asia-Pacific to intensify its collaboration with and strengthen its supply position to customers in the region.

To achieve this, BASF plans to invest €10 billion together with its partners by 2020 to further develop its local production footprint in Asia Pacific. BASF currently operates more than 100 production sites in the region, including two highly-integrated “Verbund” sites, located in Kuantan, Malaysia, and Nanjing, China.