Business expansion 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; portion of total BASF sales (excluding Oil & Gas) at around 35% in 2012
Sales in emerging markets (% of sales 1)Enlarge image
1 BASF Group sales excluding Oil & Gas
2 Comprises EU15, Norway, Switzerland, North America, Japan, Australia, New Zealand
In the years ahead, we want to grow even more robustly within the emerging economies and expand our leading position there. Today’s emerging markets are expected to account for around 60% of global chemical production in 2020. We aim to benefit from the significant growth in these regions and therefore plan to invest more than a third of our additions to property, plant and equipment there between 2011 and 2020.
In 2012, economic growth was once again considerably more vigorous in the emerging markets than in the industrialized countries. Against the backdrop of the weak global economy, however, many emerging markets – including China, India and Brazil – also posted a decline in growth rates compared with the strong dynamic of previous years. This was partly due to the lower demand from Europe for exports as well as to dampened domestic investing activities.
Nevertheless, our business in emerging markets grew once again in 2012: Compared with 2011, we were able to increase the sales of our companies headquartered in these regions by 5% to €18,213 million. All segments made a strong contribution to this growth. Based on customer location, we increased sales (excluding Oil & Gas) in emerging markets year-on-year by 2% to €21,605 million; sales to customers in emerging markets therefore amounted to around 35% of total sales (excluding Oil & Gas) in 2012. By 2020, we aim to expand this proportion to 45%.