BASF announces future plans in the face of “difficult waters”
02/05/2014
BASF increased its sales by around 3% in 2013 to reach €74 billion, with earnings up 8% to €7.2 billion. However, Dr Bock warned shareholders that the group feels it no longer has the right products for current market requirements in all cases. He said customers now place “other demands” on the company compared to the past. This, combined with changing markets and regional shifts, was making some markets difficult.
“This includes leather,” the chairman said, before listing textiles, paper and water treatment, pigments, plastic additives, nutrition and health as other areas of concern.
Dr Bock went on to say cutting 2,000 positions, divesting some activities and realigning others were all necessary steps. “In this way, we can fully concentrate on the business areas that we want to grow,” he said.
This means that over the next five years, BASF’s investments in Europe will fall below 50% of its global total for the first time and, by 2020, the group will conduct half of its research and development activities outside Europe. Dr Bock insisted Germany would remain a strong base for BASF research in the future.
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