BASF

BASF in Greater China. BASF is the world’s leading chemical company. BASF helps its customers to be more successful through intelligent system solutions and high-quality products. The company’s portfolio ranges from chemicals, plastics, performance products, agricultural products and fine chemicals to crude oil and natural gas. In 2003, BASF had global sales of more than €33 billion (circa $42 billion). BASF conducts its business according to the principles of sustainable development. This means combining business success, environmental protection and social responsibility.

BASF has a long history in China with the first business relations dating back to 1885. Today, BASF is one of the leading foreign investors in the Chinese chemical industry. BASF currently employs over 3,000 people in ten wholly owned subsidiaries and nine joint ventures in Greater China and maintains eight offices in Hong Kong, Beijing, Shanghai, Guangzhou, Nanjing, Qingdao, Chengdu and Taipei.

From 2001 to 2005, BASF is investing €2 billion in China to establish a strong and future-oriented production, marketing, sales and R&D network to participate in this fast growing market. The largest project is an integrated petrochemical site BASF is building together with SINOPEC in Nanjing, Jiangsu Province. The $2.9 billion project will start up in mid 2005 and supply the Chinese market with 1.7 million metric tons of high-quality chemicals and polymers.

BASF also has two major projects currently under construction at the Shanghai Chemical Industry Park in Caojing. BASF is building an integrated production facility for polytetrahydrofuran (PolyTHF®) and tetrahydrofuran (THF). BASF’s newly developed proprietary technology will be used to produce these chemicals used primarily to make elastic fibers. There is a growing demand for these fibers that are used for the manufacturing of sportswear, swimwear and innovative garments. The second production project is for the manufacture of polyurethane raw materials which BASF is building together with Huntsman and Chinese partners. Polyurethanes are versatile polymers used in the automotive and construction industries and in products such as refrigerators, upholstery, mattresses and footwear.

China is one of the fastest growing markets for chemicals and will become the largest national chemical market in Asia Pacific and the second largest worldwide by 2015. Customer industries such as electronic and electric, furniture, automotive, leather, and the textile, paper and packaging industries are major drivers of the rapidly growing demand for chemicals in China. For these reasons, China represents a very attractive chemical market with a high potential for growth and thus China plays a key role in BASF’s strategy. Today, BASF is among the leading suppliers in core product lines and it aims to further strengthen its position in this important market.