BASF eyes opportunities in Asia Pacific to propel future growth

German chemicals giant BASF will leverage opportunities in Asia Pacific, the largest market for production and consumption of chemicals, to drive growth in future. “We are well positioned in Asia Pacific, the world’s largest market for the production and consumption of chemicals. We are leveraging the growth opportunities of the region to contribute to the overall success of BASF Group,” said Sanjeev Gandhi, member of the board of executive directors of BASF SE and responsible for Asia Pacific, at the roundtable for investors and analysts in London on September 23, 2016. 

BASF expects gross domestic product and chemical production in Asia Pacific to continue to outgrow other regions, despite the recent slowdown. “China did not grow as fast as we had assumed. We saw low growth in mature Asian markets. India and South East Asia are picking up slightly. Overcapacities in some commodity product lines have contributed to a changing business environment. However, even under the ‘new normal,’ Asia Pacific is the growth engine for the world economy. We still see great potential for BASF as the fundamentals have not changed,” continued Gandhi.

BASF now estimates the compound annual growth rate (CAGR) for real chemical production through 2020 for Asia Pacific at around 5.6 percent, still well above the world average of 3.7 percent.

By utilising its new R&D assets, BASF aims to accelerate innovation in Asia Pacific. More than 900 employees already work in research and development across the region. They develop solutions in close cooperation with customers from various industries. Following the expansion of the BASF Innovation Campus Asia Pacific in Shanghai, China, the company is establishing a second Innovation Campus Asia Pacific in Mumbai (India), which will be inaugurated in 2017, focusing on crop protection and process engineering.

BASF will selectively expand its local production network in the region in the coming years by significantly adding capacity in Asia Pacific between 2012 and 2016. The company plans to invest around Euro 3.5 billion between 2016 and 2020 in the region and will focus on areas where BASF is technologically leading, has a competitive advantage & expects robust market growth. BASF’s target to produce around 75 percent of the products it sells in Asia Pacific in the region by 2020 remains valid.