Ludwigshafen, Germany - BASF has outlined its 'Strategy 2020' for the Asia-Pacific region, aiming to double the company's sales in the area by 2020. The German group also aims to increase sales, on average, at two percent faster than the Asia-Pacific chemical market each year, the company said 29 Sept.
Under the new strategy, the company intends to initially target five growth industries in the region, employ at least an extra 5000 staff and generate 70 percent of sales from regional sales and local production. This will involve an investment of Euro 2000 million ($2914 million) between 2009 and 2013.
The investment, BASF said, includes the recently proposed 400 kilotonnes-per-annum MDI (methylene diphenyl diisocyanate) plant in Chongqing, China, and a Euro 1400-million expansion of BASF's joint venture chemical plant in Nanjing, China. BASF also expects to save Euro 100 million annually through efficiency improvements, the statement said.
Key customer industries BASF is targeting include the automotive, construction, packaging, paint and coatings, and pharmaceuticals industries, whilst the company will also look to increase its presence in "untapped locations" such as Vietnam and inland China, the statement said.
In terms of increasing its workforce and R&D activities, the company said it has set up two dedicated recruitment centres to manage hiring of new staff. BASF will also double its number of employees from 300 at its two R&D clusters in China and India, the company said.
"Local innovation and local production are driving business growth in this region," said BASF board member, Martin Brudemüeller. "We therefore want to develop new applications, products and solutions together with our customers in Asia, adapted for Asian needs, and then serve local markets primarily through our sites and our talent in the region," he continued, adding that, "The current economic situation does not change our positive expectations of the long-term potential of these dynamic markets. (RD)