2013 Exhibitions
Global chemicals firm BASF is setting targets with focus on sustainability in the Asia Pacific. According to BASF, its Asia Pacific strategy “grow smartly” outlines investments of EUR10 billion, around 9,000 new jobs, and annual savings of EUR1 billion, in order to achieve sales of EUR25 billion to customers in the region by 2020.
Around 25% of BASF’s global R&D will be conducted in Asia Pacific over the same target year, 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.
He also furthered that the company will strengthen its innovation capabilities in Asia through its strong global R&D network.
Meanwhile, 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 EUR25 billion in the region 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.
It will also 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. It 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 EUR2 billion in regional sales will be achieved through new business and acquisitions by 2020.
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.
Likewise, the company aims for local production of approximately 75% of the products it sells in the region by 2020, in order to intensify its collaboration with and strengthen its supply position. 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 EUR10 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.
By 2020, the company is investing in a range of efficiency measures that will save approximately EUR1 billion annually. 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. 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, thereof a major part in production.
The company will establish the first programmes 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.
(PRA)
