BASF aims to grow smartly in Asia Pacific
BASF is implementing its global “We create chemistry” strategy in Asia Pacific with a set of ambitious targets and a focus on sustainability. To achieve sales of €25 billion to customers in the region by 2020, BASF’s Asia Pacific strategy “grow smartly” outlines investments of €10 billion, around 9,000 new jobs, and annual savings of €1 billion. Around 25% of BASF’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 huge 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, responsible for Asia Pacific. “Based on our strong global R&D network, we will considerably strengthen our innovation capabilities in Asia Pacific, enabling us to better serve our customers in all industries in the region.”
Grow two percentage points above regional chemical production
BASF estimates the cumulative annual growth rate (CAGR) for real chemical production through 2020 for Asia Pacific at 6.2%, well above the world average of 4.0%. According to its strategy, BASF intends to grow profitably at least two percentage points above regional chemical production to achieve sales of €25 billion in Asia Pacific by 2020.
BASF will collaborate with customers in focus markets to provide solutions for applications such as low-carbon construction, advanced pharmaceutical production, environmentally-friendly coatings, more sustainable packaging, energy-efficient vehicles, renewable energy, and solutions for less resource-intensive agriculture.
BASF will conduct around one quarter of its global research activities from Asia Pacific. 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. Following the successful inauguration of the BASF Innovation Campus Asia Pacific in Shanghai, China, the company is currently considering establishing a second Innovation Campus Asia Pacific. More than €2 billion in regional sales will be achieved through new business and acquisitions by 2020.