Favorable outlook for BASF’s presence in AsiaDec 27th, 2016
Being a giant in chemical industry worldwide, BASF is also one of the largest player on the Asian market. Its sales in the region are estimated to over $13 billion a year. The company is even leading in an especially innovative in chemicals Japan: not only BASF has two plants in the country, but it also owns a modern research and development center there. Over the last couple years, BASF’s presence in Asia has been quite unnoticeable. Since 2012 and all the way up to 2015, German market leader in chemical industry experienced severe stagnation in sales executed in Asia. Nevertheless, its future— for 2017 and beyond—is very promising. By thoroughly analyzing the market, BASF decided to increase investments into the regions of Asia and the Pacific, thus busting its performance.
Moreover, in 2017 BASF will open new aroma chemical and polyisobutylene factories in Malaysia will an initial capital investment of $500 million, along with processing plants in Shanghai, and a catalyst factory in Thailand. BASF involvement on Japanese arena is among key priorities, as the country has a closed speciality crops market that is in need of protective products. Once BASF manages to set its foot on the market, it is soon expected to become one of the major suppliers. Regardless of slow development of China’s chemical market, which is the largest in the area, BASF continued to invest into new equipment, research and development centers, and infrastructure. This ensures that the company’s performance will not be depended on Chinese economy strengthening or diminishing.
Asian chemical market might be affected by a number of external factors, including the aftermath of recent Brexit of amendments to trade policies in the U.S. The forecasts for economic growth in Asia are optimistic. According to the Asian Development Bank, the region excluding Japan is expected to experience more than 5.7% of average growth. Not to mention that, according to the bank, China’s economy is to grow by around 6.4%. With such reassuring outlooks, BASF is more likely to hold a place among top five industry leaders in Asia in the nearest future.