29 November 2011 10:28 [Source: ICIS news]
LONDON (ICIS)--BASF continues to aim to grow 2 percentage points above global chemical production growth to increase sales by an average of 6% a year until 2020, the Germany-based chemicals major said on Tuesday.
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BASF is assuming that global chemical production will grow more strongly than GDP through 2020, because emerging market industries are growing, chairman Kurt Bock said.
The company expects the global economy to grow by an average of 3% a year through to 2020, which is slightly faster than in the past 10 years, while chemical production is forecast to grow by an average of 4% a year.
In 2020, the company also expects current emerging markets to contribute 45% to sales. BASF said that its sales to customers in emerging markets have almost tripled in the past 10 years and accounted for approximately one-third of total sales (excluding oil and gas) in 2010.
Investments will boost the company’s future growth, said Bock. Between 2011 and 2020, BASF plans capital expenditures of €30bn to €35bn. More than one-third of this will be invested in emerging markets, he added
“We already have leading positions and fast-growing businesses in emerging markets, and this is something we will build on,” said Bock.
Vice-chairman Martin Brudermuller said that in the future, BASF will focus on innovations for new materials and system solutions.
“Innovations of this kind require a broad portfolio, interdisciplinary cooperation and a deep understanding of our customers’ value chains. We therefore will continue to develop our portfolio in the direction of customer-focused businesses,” added Brudermuller.
In 2020, sales of €30bn and an EBITDA of €7bn are to be generated with products that have been on the market for less than 10 years, he said.
The company will also further develop its integrated Verbund system, in order to strengthen its position in the chemical industry.
“The scope of skills and know-how that we combine under one roof is what sets us apart from our competitors. These factors include our innovative strength, our broad technology basis, our operational excellence and our global access to relevant customer industries,” said Bock.
($1 = €0.75)
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