Growth in emerging markets
- 2020: emerging markets are expected to account for around 60% of world chemical production
- BASF participates in growth through strong local presence
- Sales increase in emerging markets compared with previous year
- Investments of €30 billion to €35 billion between 2011 and 2020, of which more than a third in emerging markets
As part of our “We create chemistry” strategy, we aim to further strengthen growth in emerging economies in the years ahead and expand our position in future markets. We define emerging markets as the Asia Pacific region (except Japan, Australia and New Zealand), South and Central America, Eastern Europe, the Middle East and Africa. We anticipate that around 60% of the world’s chemical production in 2020 will come from today’s emerging markets, particularly China. Our strong local presence already allows us to benefit from the significant growth in these regions.
Sales in emerging markets
(% of sales¹)
¹ BASF Group sales excluding Oil & Gas
² Comprises EU15, Norway, Switzerland, North America, Japan, Australia, New Zealand
Emerging markets recorded substantial economic growth in 2011. Supported by global economic momentum during the first half of the year, China’s economy in particular experienced noticeable growth. The economies of India and Brazil also grew, thanks to robust domestic trade. Russia benefited from comparatively high raw material prices over the course of the year. By contrast, economies in the Middle East and Northern Africa grew more slowly than expected as a result of the difficult political conditions.
Compared with the previous year, companies headquartered in emerging markets increased sales by 18% to €17,286 million. Nearly all segments made a strong contribution to this growth thanks to high demand and prices. Based on customer location, we increased sales (excluding Oil & Gas) in emerging markets year-on-year by 17% to €21,196 million.
Between 2011 and 2020, we plan capital expenditures of €30 billion to €35 billion; more than a third of this sum will be invested in emerging markets. Important projects already underway include: the expansion of our Verbund site in Nanjing, China; our MDI plant in Chongqing, China; and the acrylic acid and superabsorbents production complex in Brazil. We also aim to enhance our research and development activities in emerging markets, particularly in Asia. That is why we are building the first Innovation Campus Asia Pacific in Shanghai, in addition to our existing research facilities elsewhere in China as well as in Singapore and India.