29 September 2009 15:57 [Source: ICIS news]
By Nigel Davis
The chemicals giant has its large cracker complex investment with Sinopec in
It also has it eyes on the consolidating downstream chemicals industry in
The 2020 strategy update targets ambitious 6% to 7%/year sales growth and a doubling of regional sales. Last year BASF sales in Asia-Pacific amounted to €9.3bn. The financial crisis has hit hard with local plants in
BASF has had an aggressive Asia and
Over the next 10 years it wants to make more products in
The company says it is looking at value chains in these key industries. Its understanding of those value chains will drive business decsions that help to raise organic growth and prompt acquisitions.
The plan is to increase employee numbers in the region by a third and add more research and development capability in
BASF’s growth plans are underpinned by clear demographic trends. The Asia-Pacific region will remain a net importer of chemicals even though there is already local overcapacity in some products. The company believes that its needs to react to the migration of industries within Asia-Pacific itself to ensure that it has its chemicals production in the right place.
“In the next 10 years, half of the two billion potential customers of chemicals will be in
BASF estimates that by 2020 Asia-Pacific will account for 46% of the $1,150bn worth of regional demand.
Its focus on
Underlying BASF’s plans are a more customer-driven approach to project and market development. BASF has worked closely with the Tata Group, for instance, in its development in
“Local innovation and local production are driving business growth in this region. We therefore want to develop new applications, products and solutions together with our customers in
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