Profitable growth ensured by good position in growth markets

Growth strategy for Asia

Picture: Several production an Verbund sites in asia

Our long-term strategy in Asia Pacific allows us to position ourselves as a major chemical manufacturer in this key growth market. The chemical market in Asia Pacific is the world's largest and fastest growing chemical market. BASF has capitalized on the region's growth over the past few years. In 2007, our regional sales were € 9.6 billion, or approximately 20 percent of global sales (excluding Oil & Gas).

Asia, especially China, is the main driver for growth in the world. Up to 2015 the chemical markets in Asia Pacific is expected to grow by 3–4% per year.

In Asia Pacific, BASF is positioning itself as a leading chemical manufacturer in this key growth market.

We want to strengthen our position as one of the five largest suppliers in our main product lines
20 percent of our global sales and earnings in the chemical business are expected to be generated in Asia Pacific
70 percent of our Asian sales are expected to come from local production by 2010

We have therefore expanded our local production network in accordance with our global strategy, and locally manufactured products now account for around 50 percent of our sales in the region. BASF has invested € 6.3 billion in Asia Pacific from 1990 to 2006. During 2007 to 2011 we are planning to invest further € 1.5 billion.

"Gas for Europe" concept

One major future challenge is to cover increasing gas demand for Europe. We assume that the gas demand will increase from 550 bcm in 2006 to 620-6800 bcm in 2020 and imports will have to be increased from 60% to approx. 80 % during that period.

"Gas for Europe" strategy means: