BASF To Invest €10 billion In Asia Pacific Region
Global chemical company, BASF, plans to invest €10 billion in Asia from 2013-2020, as part of the company’s Asia Pacific strategy.
AsianScientist (Jun. 6, 2013) - Global chemical company, BASF, plans to invest €10 billion in Asia from 2013-2020, as part of the company's "grow smartly" Asia Pacific strategy.
"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.
The company estimates the cumulative annual growth rate (CAGR) for real chemical production through 2020 for Asia Pacific at 6.2 percent, well above the world average of 4.0 percent. According to its strategy, BASF intends to grow profitably at least two percentage points above regional chemical production to achieve sales of €25 billion in Asia Pacific by 2020.
It aims 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.
By 2020, BASF will conduct around 25 percent of its global research activities from Asia Pacific. It plans to reach a total of around 3,500 R&D personnel in the region by 2020, up from around 800 in 2012. BASF 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. In addition, BASF will also explore untapped markets in Mongolia, Laos, Myanmar, and Cambodia.
By 2020, BASF aims for local production of approximately 75 percent of the products it sells in the Asia Pacific region. It 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.
The company says it will create around 9,000 value-adding employment opportunities by 2020, mainly 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.
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