n Sales in the Construction Chemicals division to be doubled to approximately
€4 billion by 2015
n Asia Pacific region is expected to be a key contributor
n Innovation, durability and energy efficiency are the key industry trends in Asia
Pacific
July 12, 2007 – One year after acquiring the construction chemicals business from Degussa, BASF said today it expects to double its sales in the Construction Chemicals business to around €4 billion by 2015 with the key focus on growth markets like Asia Pacific.
"On one hand, we are speeding up geographic and market expansion in Asia Pacific," said Dr. Boris Gorella, group vice president for BASF Construction Chemicals Asia Pacific. "On the other hand, we are transferring world-leading technologies to this region and addressing the need for high durability, fast construction and energy efficiency."
The market for construction chemicals has a volume of €29 billion and is growing at 4 to 5 percent per year. BASF expects to grow its business in construction chemicals by 7 to 8 percent in the coming years in this attractive, innovation-driven market.
The company said it plans to achieve its goals in three ways. First, it will transfer technologies that are successful in one region to other regions. Second, BASF's competencies, for example in research and development, will be used to create better product solutions and to achieve rapid market entry. Third, BASF aims to generate more business in growth markets such as Asia Pacific and Eastern Europe. Acquisitions in growth markets are also to play a role in achieving these goals, an example being BASF's acquisition of Chinese concrete additives producer, Hi Con, in December 2006.
Gorella highlighted four key trends in the construction industry with which BASF is aligning its business strategy:
n Buildings and structures are expected to have a considerably longer lifetime lifespan. This cannot be achieved without construction chemistry.
n The spectrum of cements and additives such as sand and gravel is constantly expanding and BASF must be able to tailor its concrete admixture products to these changing requirements.
n Customers are increasingly calling for lower costs in terms of material, energy and capital on the one hand and for faster completion times for building projects on the other.
n The interest in energy efficiency in the use of the finished buildings has increased enormously and is likely to grow further.
As the world's biggest construction market, Asia Pacific hosts the most attractive growth opportunities with booming development in infrastructure development and high-rise building construction.
The construction chemicals industry in Asia is very diversified because market needs vary from country to country. For example, China, the fastest growing emerging market, is placing much emphasis on "green building" to enable energy efficiency and environmental protection. Mature markets like Japan, however, call for innovative technologies for building renovation and refurbishing.
Gorella stressed that BASF is committed to understanding customers' needs exactly and synergizing regional capabilities to meet both customer requirements and market trends by offering intelligent solutions.
The construction industry is one of BASF's key industries, accounting for between 10 and 15 percent of the company's sales.
About BASF's Construction Chemicals Division
BASF's Construction Chemicals division is the leading supplier of chemical systems and formulations for the construction industry. Continuous innovation and tailor-made solutions ensure its customers are more successful. Its Admixture Systems strategic business unit specifically helps customers in the ready-mix, pre-cast and manufactured concrete and underground construction industries. The Construction Systems strategic business unit offers a wide range of products for sports and industrial flooring, external renders and wall insulation, expansion joints and wood preservatives, as well as specialist repair mortars, tile adhesives and waterproofing membranes. The division operates production sites and sales centers in more than 50 countries and regions and achieved sales of €2.2 billion with approximately 7,500 employees in 2006. With strong presence in China for 20 years, BASF's Construction Chemicals has been recognized as a reliable partner in the industry and contributed to many prestigious projects including Taipei 101, Hangzhou Bay Bridge, Three Gorges Dam and China High-speed Railway. For further information, please visit http://ap.construction-chemicals.basf.com
About BASF
BASF has been a committed partner to Greater China since 1885. It is one of the biggest foreign investors in the Chinese chemical industry. The company currently has more than 5,500 employees and operates 29 wholly-owned subsidiaries and nine joint ventures. In 2006, BASF achieved sales of over €3.6 billion in Greater China. For further information, please visit www.greater-china.basf.com
BASF is the world's leading chemical company: The Chemical Company. Its portfolio ranges from chemicals, plastics, performance products, agricultural products and fine chemicals to crude oil and natural gas. As a reliable partner to virtually all industries, BASF's high-value products and intelligent system solutions help its customers to be more successful. BASF develops new technologies and uses them to meet the challenges of the future and open up additional market opportunities. It combines economic success with environmental protection and social responsibility, thus contributing to a better future. BASF has approximately 95,000 employees and posted sales of €52.6 billion (approximately US$66.1 billion) in 2006. Further information on BASF is available at www.basf.com