Despite a slowdown in growth, especially in China, Asia Pacific will remain the most dynamically growing worldwide, accounting for more than one-third of global GDP in 2020, Martin Brudermüller, vice chairman of the managing board at BASF (Ludwigshafen / Germany; www.basf.com), told a press conference in Hong Kong / China. The world’s largest chemical producer, which sees itself ranked eighth and the only foreign player among Asia’s top ten, is positioning itself as the leading provider of sustainable solutions, he said.

The BASF executive acknowledged that there will be "huge challenges" to face in Asia Pacific in the coming decade despite remaining the fastest growing market for the chemical industry. Thus, the company will place particular emphasis on its "grow smartly" strategy for the region and has set a sales target of EUR 25 bn to be reached by 2020. To make this target a reality, Brudermüller explained that BASF will need to grow 2% above the estimated regional chemical industry growth of 6.2%.

Along with doubling sales and creating 9,000 new jobs, BASF’s goal for Asia Pacific through 2020 call for achieving cost savings totalling EUR 1 bn. As an efficiency measure designed to lower freight costs, the group is striving to increase local production to about 75% of all products sold in the region. Together with partners, it will invest EUR 10 bn to develop the local footprint. Part of this goal will be to widen the share of global technical and engineering services procured locally.

Already announced is the plan to concentrate 25% of global R&D in Asia. Complementing its first Asian innovation centre at Shanghai – see Plasteurope.com of 08.11.2012 – the framework is being laid for a second innovation centre in India. Recently announced Asian capital spending projects include expansion of ethylene oxide production and a new plant for neopentylglycol (NPG) at its joint venture with Sinopec (Beijing / China; www.sinopec.com) at Nanjng up to 2014 – see Plasteurope.com of 03.06.2013. Also planned for 2014 are a EUR 860m MDI plant at Chongqing / China and a plant for polyurethanes, surfactants and dispersions at Dahej / India.