Home > Chemical News

Chemical News

Asian demand key to future growth, says BASF

https://www.chemnet.com   Jun 25,2010
BASF believes its plastics division will outperform the global market’s predicted 5% annual growth, due largely to the company’s activities in Asia and its focus on speciality grades.



“Last year was far from easy, not only for BASF but for the entire plastics industry. In 2009, sales in the plastics segment dropped as a result of lower demand and falling prices, especially for standard products,” said Dr Martin Brudermüller, the member of BASF’s board of executive directors responsible for plastics and Asia Pacific. "Sales declined by more than 20% to ?.1bn.”



As a result of changes in the market the chemicals giant implemented a strategy to reduce overcapacities for standard plastics while expanding its specialties business. According to Brudermüller “shedding sites and activities that are no longer competitive or that are unable to meet our expectations for profitability” will help BASF maintain long-term growth.



Instead the company is focusing on areas such as its biodegradable plastics operation Ludwigshafen, which is to be expanded. This trend has seen the sales percentage of speciality plastics rise from around 40% in 2006 to more than 50% today.



“With this portfolio, and thanks to our know-how in research and development and in applications technology, we intend to grow profitably and faster than the market,” explained Brudermüller.



He expects global demand for plastics to continue growing at an annual rate of about 5% until 2015, but with Asia outperforming that figure. “As a consequence, BASF will focus on Asia when investing in new plants in the coming decades. At the same time, we will establish strong research and development facilities in Asia in order to serve our customers close to their markets,” Brudermüller said.
 Print  |    add to Favorites  |    Close