BASF aims to grow smartly in Asia Pacific
BASF’s growth and contribution to Asia Pacific will also develop together with changing economies and demographics. The company will provide solutions for the needs of the emerging middle class forming the “base of the pyramid” through solutions for affordable mass housing, food fortification, wind energy, and water purification. Additionally, BASF will explore untapped markets in Mongolia, Laos, Myanmar, and Cambodia.
Investments for local production
By 2020, BASF aims for local production of approximately 75% of the products it sells in the Asia Pacific region in order to intensify its collaboration with and strengthen its supply position to customers in Asia Pacific. At the same time, local production improves resource efficiency by reducing the transportation needed for imports and exports, and by enhancing energy and raw material efficiency through highly-integrated production systems close to customers.
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 Asia Pacific region, including two highly-integrated “Verbund” sites, located in Kuantan, Malaysia, and Nanjing, China.
BASF will invest in a range of efficiency measures that will save approximately €1 billion annually by 2020. These measures include the expansion of BASF’s regional technical and engineering procurement hub, which enhances local procurement to reduce costs from transportation, improve quality, and speed up investment schedules.
Form the best team
Further development of a robust employee base in Asia Pacific is crucial to BASF’s long-term success in the region. Taking advantage of the growing talent base in the region, BASF will create around 9,000 value-adding employment opportunities by 2020, thereof a major part in production. The company will establish the first programs of its global Learning Campus in Asia Pacific, including a facility in Singapore focusing on regional talent development activities as well as providing a hub for learning innovation.
As a core part of its strategy, BASF also aims to contribute to the social development of communities in its operating neighborhood. This includes partnerships for responsible investment, transparency in reporting, and engagement with society.