BASF growth strategy ‘on track’
29/09/2015
“We are growing BASF with the goal of making it even more profitable,” said chairman Dr Kurt Bock.
The German group expects chemical production to continue to grow well above global GDP until 2020.
However, major markets have not grown as fast as anticipated and the oil price has decreased substantially.
“Geopolitics have contributed to higher volatility,” said Bock.
It now predicts its industrial production will grow 3.5% and chemical production will increase 3.9% for the next five years.
The emerging markets will remain the global growth drivers; Asia Pacific is the largest chemical market. BASF projects that Western Europe will get back on the growth path, but on a low level. Competitive feedstock costs and an expanding economy will drive the growth of chemical production in North America.
This year, BASF will achieve its target of €10 billion of sales with products and solutions that have been on the market since 2010. It will maintain its R&D spending at around 3% of sales, excluding oil and gas.
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