How BASF plans to sustainably conquer the Asia Pacific Region
The actions by German chemical giant is impressive with generous investments, new jobs, R&D investments, efficiency measures and sales targets up to 2020
BASF has been launching on June 4, 2013 its global “We crate chemistry” strategy in Asia Pacific with ambitious targets by 2020 and a focus on sustainability. Around EUR 10 billion will mark the total investments planed. A creation of around 9000 new jobs and the concentration of 25 % of global R&D activities, as well as efficiency measures to save EUR one billion annually, all in order to reach the ambitious sales goals of EUR 25 billion by 2020 with solutions meeting customer’s sustainability needs.
BASF estimates the cumulative annual growth rate for real chemical production for Asia pacific at 6.2 %, well above the world average of 4.0%. BASF intends to grow profitably at least two percentage points above regional chemical production to achieve the EUR 25 billion target in Asia Pacific by 2020. It will collaborate with customers in focus market to provide solutions for application such as low carbon construction, advanced pharmaceutical production, environmental friendly coatings, more sustainable packaging, energy efficient vehicles, renewable energy and solutions for less resource intensive agriculture.
By 2020 BASF plans to reach a total of 3500 R&D personnel in the region, up from around 800 in 2012. The company will establish research facilities in the areas of electronic materials, battery, materials, agriculture, , catalysis, mining, water treatment, polymers and minerals. After the successful inauguration of BASF Innovation campus Asia Pacific in Chinese Shanghai (TextileFuture reported on it, see News November 15, 2012). More than EUR 2 billion in regional sales will be achieved through new business and acquisitions by 2020.
BY 202, BASF aims for local production of approximately 7 % of the products it sells in the Asia Pacific region. At the same time, local production improves resource efficiency by reducing transportation needed for imports and exports, and by enhancing energy and raw material efficiency through highly integrated production systems close to customers. For these plans investments of EUR 10 billion will be effected with partners. BASF currently operates more than 100 production sites in the region, including two highly integrated “Verbund” (multipurpose) sites, located in Kuantan, Malaysia, and Nanjing (PRC). Another EUR one billion annually will flow into the expansion of BASF’s regional technical and engineering procurement hub enhancing local procurement to reduce cost from transportation, improve quality, and speed up investment schedules. Further the plan includes also the adding of around 9000 value adding employment opportunities up to 2020. TextileFuture has reported on the global Learning Campus in Asia Pacific, including a facility in Singapore (see TextileFuture’s News of May 30, 2013).