BASF targets to double its sales in Asia over the next ten years
October 01/2009
October, 1 (plastemart.com) -- The world"s largest chemical maker BASF
is targeting to double its sales in Asia by 2020 and invest ?2 bln
(US$2.9 bln) there through 2013. It is planning to grow 2 percentage
points faster than the region"s market, which could consume almost 46%
of the world"s chemicals by 2020.
BASF
has taken this decision to invest close to its customers. Triggered by
government"s 4 trillion yuan (US$590 bln) stimulus package, China is
seeing a growth of 8.5% in the third quarter, 7.9% in the second
quarter and 6.1% in the first quarter.
Though business in Asia is not at a desired level, signals out of Asia
are more promising than in Europe and North America. 20% of group sales
and operating profit would come out of Asia next year, and 70% of
revenues in the regions would be produced locally.
Investments and potential takeovers are needed to maintain that ratio over the next ten years. BASF
and its partner, Sinopec Corp, started expansion of their JV in Nanjing
at an investment outlay of US$1.4 billion on new plants and on an
upgrade to an existing steam cracker. In Chongqing, BASF is planning to
construct a 400,000 tpa plant for MDI.
