BASF casts an eye on Asia Pacific

Reading Time: 2 minutes

BASFThe world largest chemical company, Germany’s BASF,  has announced an investment of $13.8 billion by 2020 in order to implement its regional growth strategy in Asia Pacific. Along with doubling its sales in the region, the plan has the objective of moving one quarter of the company’s global research activities, now principally in Europe, to Asia. Whereas about half of the total investment will be allocated to China, the company confirmed its interest in Mongolia, Laos, Myanmar and Cambodia.

BASF, which currently generates around 16 per cent of its revenues from Asia Pacific, said it will set aside $13.8 billion by 2020 aimed at generating regional sales of $33.2 billion during the 2013-2020 period.

Apart from doubling its current sales, BASF hopes to conduct one quarter of its global research activities in the region, creating 9.000 new jobs in research and development (R&D), as part of the company’s plan to shift its focus away from Europe.

In this context, the German giant plans to explore new opportunities in “untapped markets” such as Mongolia, Laos, Myanmar and Cambodia in order to reach by 2020 a total of around 3.500 R&D employees in the region, which at present are just 800.

The “chemical company”, as BASF calls itself, is also considering opening a new “Innovation Campus” in Asia following the success of its facility in Shanghai and the two so-called “Verbund” sites, located in Kuantan, Malaysia and Nanjing, China. The new research hubs will focus on electronic materials, battery materials, agriculture, catalysis, mining, water treatment, polymers and minerals, putting particular attention on chemicals destined for the textile and leather industries.

Dr Martin Brudermüller, BASF’s vice-chairman of the board of directors, said that the strategy will turn the company into “the leading provider of sustainable solutions for the Asia Pacific region”. He also argued that BASF “will considerably strengthen its innovation capabilities in Asia Pacific, enabling us to better serve our customers in all industries in the region.”

In the crowded chemical industry sector in Asia Pacific, Chinese companies play a major role and also benefit from lower logistic costs, while they in the past managed to increasingly improve their product quality. BASF, in turn, plans to enhance its market share by raising from 60 per cent to 75 per cent the volume of its regionally manufactured products. To facilitate this, the company aims to expand BASF’s regional technical and engineering procurement hub.

Do you like this post?
  • Fascinated
  • Happy
  • Sad
  • Angry
  • Bored
  • Afraid

Reading Time: 2 minutes

The world largest chemical company, Germany’s BASF,  has announced an investment of $13.8 billion by 2020 in order to implement its regional growth strategy in Asia Pacific. Along with doubling its sales in the region, the plan has the objective of moving one quarter of the company’s global research activities, now principally in Europe, to Asia. Whereas about half of the total investment will be allocated to China, the company confirmed its interest in Mongolia, Laos, Myanmar and Cambodia.

Reading Time: 2 minutes

BASFThe world largest chemical company, Germany’s BASF,  has announced an investment of $13.8 billion by 2020 in order to implement its regional growth strategy in Asia Pacific. Along with doubling its sales in the region, the plan has the objective of moving one quarter of the company’s global research activities, now principally in Europe, to Asia. Whereas about half of the total investment will be allocated to China, the company confirmed its interest in Mongolia, Laos, Myanmar and Cambodia.

BASF, which currently generates around 16 per cent of its revenues from Asia Pacific, said it will set aside $13.8 billion by 2020 aimed at generating regional sales of $33.2 billion during the 2013-2020 period.

Apart from doubling its current sales, BASF hopes to conduct one quarter of its global research activities in the region, creating 9.000 new jobs in research and development (R&D), as part of the company’s plan to shift its focus away from Europe.

In this context, the German giant plans to explore new opportunities in “untapped markets” such as Mongolia, Laos, Myanmar and Cambodia in order to reach by 2020 a total of around 3.500 R&D employees in the region, which at present are just 800.

The “chemical company”, as BASF calls itself, is also considering opening a new “Innovation Campus” in Asia following the success of its facility in Shanghai and the two so-called “Verbund” sites, located in Kuantan, Malaysia and Nanjing, China. The new research hubs will focus on electronic materials, battery materials, agriculture, catalysis, mining, water treatment, polymers and minerals, putting particular attention on chemicals destined for the textile and leather industries.

Dr Martin Brudermüller, BASF’s vice-chairman of the board of directors, said that the strategy will turn the company into “the leading provider of sustainable solutions for the Asia Pacific region”. He also argued that BASF “will considerably strengthen its innovation capabilities in Asia Pacific, enabling us to better serve our customers in all industries in the region.”

In the crowded chemical industry sector in Asia Pacific, Chinese companies play a major role and also benefit from lower logistic costs, while they in the past managed to increasingly improve their product quality. BASF, in turn, plans to enhance its market share by raising from 60 per cent to 75 per cent the volume of its regionally manufactured products. To facilitate this, the company aims to expand BASF’s regional technical and engineering procurement hub.

Do you like this post?
  • Fascinated
  • Happy
  • Sad
  • Angry
  • Bored
  • Afraid