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Worldwide strategy guided by sustainable development |
05/04 |
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Interview with Dr. Andreas Kreimeyer, the member of BASF's Board of Executive Directors responsible for the Asia Region
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How do you see the economic future of the Asia as a growth region?
Asia, especially China, is and remains the economic growth engine of the world economy. The economies in the region are moving stridently forward: In recent years the gross national product of Asia, including Japan, expanded four percent on average, in China even more than eight percent annually. That pace is likely to be maintained in coming years. To date the Asian chemical market matches North America's in size and is bigger than the European market. According to our estimates the Asian chemical market (including Japan) is expected to grow at close to four percent annually until 2015.
The burgeoning markets of Asia present BASF with substantial opportunities. At the present time our sales in Asia already represent about 14 percent of the Group's total. Ludwigshafen also benefits from this trend: Each year the site exports some 1 billion euros in products from Ludwigshafen to Asia. Our objective is to have Asia account for 20 percent of the BASF Group's chemical business by 2010. To this end we are expanding our production capabilities as well as our team substantially.
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To what extent is business thinking compatible with social and ecological considerations?
Our worldwide strategy is guided by sustainable development. In effect that means that we want long-term profitable growth in harmony with the needs of our employees, society and the environment. What does that mean? The basis for sustainable development is economic success - it affords us the freedom to deploy our funds in such a way that we can fulfill the expectations of our stakeholders. Our responsibility to our employees is reflected, for example, in above-average compensation, in constant training for bigger and better jobs, in providing safe working conditions and a culture marked by dialogs. Our ecological commitment is reflected, for instance, in our reliance on environmentally-friendly production technologies, efficient integrated structures and intelligent products that solve problems for customers and make their processes environmentally compatible - as exemplified by products such as Keropur®, a fuel additive that reduces fuel consumption and emissions and by insulating materials like Styropor®, expandable polystyrene and Neopor®, a polypropylene foam. These environmentally-friendly products demonstrate our innovativeness and set us apart from the competition. That is how ecological and economic benefits operate side by side.
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How does BASF capitalize on its competitive advantage in sustainability in its operations and customer relationships?
Especially in Asia, economic growth and high population densities in many regions make sustainability increasingly important. On the strength of our commitment to sustainability we are known as a reliable and competent partner, a reputation that not only extends well beyond our corporate boundaries but also builds trust among the people of Asia as well as our customers and their governments. It puts us in a position of being the preferred supplier and, of course, also the preferred employer. The "Friendship Award" bestowed on Dr. Bernd Blumenberg in Beijing last year represents for example such a public recognition of our efforts. To make the philosophy of sustainability a business practice, we also join efforts with other companies. Early this year Dr. Dietmar Nisssen, President of BASF East Asia, signed an agreement for the formation of a Chinese Council on Sustainable Development. Representatives of eleven other companies are part of the agreement. As a result important Asian corporate representatives are now tied into the global network of the World Business Council on Sustainable Development. We are seeing the philosophy of corporate sustainability being increasingly accepted by customers. That is a competitive advantage with a monetary payout that supports the ongoing success of our business. With this in mind it is our corporate principle to keep bringing social, ecological and economic considerations into harmony.
By Brigitte Koschnitzki
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