• Investment in the region of €10 billion from 2013-20• Around 9,000 new jobs in Asia Pacific by 2020• 25% of global R&D activities in Asia Pacific by 2020• Efficiency measures to save €1 billion annually by 2020• Target: €25 billion sales to Asia Pacific by 2020 with focus on sustainable solutions.BASF is implementing its global “we create chemistry” strategy in Asia Pacific with a set of ambitious targets and focusing on sustainability. To achieve sales of €25 billion to customers in the region by 2020, BASF’s Asia Pacific strategy “grow smartly” outlines investments of €10 billion, around 9,000 new jobs, and annual savings of €1 billion. Around 25 per cent of BASF’s global R&D will be conducted in Asia Pacific by 2020 to develop innovative solutions that address the region’s challenges of resource efficiency, food and nutrition, and quality of life.

“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, Board of Executive Directors, BASF SE, responsible for Asia Pacific. “Based on our strong global R&D network, we will considerably strengthen our innovation capabilities in Asia Pacific, enabling us to better serve our customers in all industries in the region.” Grow two-percentage points above regional chemical productionBASF estimates the cumulative annual growth rate (CAGR) for real chemical production through 2020 for Asia Pacific at 6.2 per cent, well above the world average of 4.0 per cent. 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.BASF will collaborate with customers to provide solutions for applications such as low-carbon construction, advanced pharmaceutical production, eco-friendly coatings, more sustainable packaging, energy-efficient vehicles, renewable energy, and solutions for less resource-intensive agriculture.
BASF will conduct around one quarter of its global research activities from Asia Pacific. By 2020, BASF plans to reach a total of about 3,500 R&D personnel in the region, up from around 800 in 2012. BASF is also establishing research facilities in 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, the company is currently considering establishing a 2nd Innovation Campus Asia Pacific. More than €2 billion in regional sales will be achieved through new business and acquisitions by 2020.
BASF’s growth and contribution to Asia Pacific will also develop together with changing economies and demographics. The company will provide solutions for the needs of emerging middle class forming the “base of the pyramid” through solutions for affordable mass housing, food fortification, wind energy, and water purification. Additionally, BASF will explore untapped markets in Mongolia, Laos, Myanmar, and Cambodia. “The strategic importance of India as a fast-growing Asian economy is recognised by BASF. In 2025, India is expected to be one of the top countries, contributing significantly to BASF’s sales in the Asia-Pacific region”, said Prasad Chandran, Chairman, BASF Companies in India and Head South Asia. “To fuel the desired growth, BASF is investing in new projects to build capacities and improve market access. The Dahej greenfield project coupled with business initiatives like the industry teams approach and the ‘base of pyramid’ project will help us serve our customers better with new, differentiated offerings. Going forward, our efforts in the area of research and development will also intensify,” he added. Invest in Asia Pacific for local productionBy 2020, BASF aims for local production of approximately 75 per cent of the products it sells in Asia Pacific to intensify its collaboration with and strengthen its supply position to customers in Asia Pacific. At the same time, local production improves resource efficiency by reducing the transportation needed for imports and exports, and by enhancing energy and raw material efficiency through highly integrated production systems close to customers.
In order to achieve this, BASF plans to invest €10 billion together with its partners by 2020 to further develop its local production footprint in Asia Pacific. BASF currently operates more than 100 production sites in the Asia Pacific, including two highly integrated Verbund sites in Kuantan, Malaysia and Nanjing, China.
Improve efficiencyBASF will invest in a range of efficiency measures that will save approximately €1 billion annually by 2020. These measures include the expansion of BASF’s regional technical and engineering procurement hub, which enhances local procurement to reduce costs from transportation, improve quality, and speed up investment schedules.