BASF plans to boost R&D in Asia-Pacific

BASF has revealed plans to achieve sales of €25 billion (US$33.3 billion) in the Asia-Pacific region by 2020, growing profitably at two or more percentage points above the projected regional growth rate for chemical production of 6.2% per year. To achieve this, the company plans to invest about €10 billion (US$13.3 billion) in production sites, as it seeks to grow smartly in the region.
“In the next decade, Asia-Pacific will face huge challenges while remaining the fastest growing market for chemicals,” said Martin Brudermüller, an executive board member with responsibility for Asia-Pacific. “Based on our strong global R&D network, we will considerably strengthen our innovation capabilities in Asia-Pacific.”
In particular, BASF added that it would collaborate with customers in applications such as low-carbon construction, advanced pharmaceutical production, environmentally friendly coatings, more sustainable packaging, energy-efficient vehicles, renewable energy and less resource-intensive agriculture. It will also seek to develop new markets, such as Mongolia, Laos, Myanmar and Cambodia.
By 2020, about 25% of BASF’s global R&D will take place in Asia-Pacific. It plans to boost the numbers of R&D employees in the region from 800 in 2012 to 3,500 by 2020. The BASF Innovation Campus Asia-Pacific in Shanghai opened recently and the firm is now considering a second.
Among the planned investments will be efficiency measures aimed at saving some €1 billion (US$1.3 billion) per year by 2020, including the expansion of the regional technical and engineering procurement hub.