Segment profile The Performance Products segment consists of the Dispersions & Pigments, Care Chemicals, Nutrition & Health and Performance Chemicals divisions. Our offerings enhance the performance of industrial and consumer products worldwide. With our tailor-made solutions, our customers can make their production processes more efficient and give their products improved application properties. Divisions Dispersions & Pigments Raw materials used to formulate products in the construction, automotive, adhesives, printing, packaging, electronics and paper industries Care Chemicals Ingredients for the hygiene, cosmetics, detergent and cleaner industries as well as for applications in the chemical industry Nutrition & Health Products for the food and feed industries, the flavor and fragrance industry and the pharmaceutical industry Performance Chemicals Customized products for many sectors, from mining and the fuel industry to plastics processing Sales Factors influencing sales Income from operations before special items(million €) 1 Restated figures; for more information, see Business review How we create value – an example Hydraulan® 406 ESI New low-viscous brake fluid for enhanced driving safety Value for BASF 2-fold Market growth compared with the market for brake fluids as a whole Value for our customers >50 % Lower viscosity compared with standard products BASF has developed and sold brake fluids for the automotive industry for over 60 years. Hydraulan® 406 ESI enables us to secure a leading position in the attractive market segment for low-viscous brake fluids, which is growing twice as fast as the market as a whole. The new product meets several international market standards 2 as well as the new requirements of automotive manufacturers, particularly with respect to assisted and autonomous driving. As electronic systems become more and more complex, the demands on the braking system also increase. Brake fluids are a safety factor – they must ensure fast signal processing and breaking reactions. A low viscosity is crucial here. With a viscosity that is more than 50% lower than standard products, 3 Hydraulan® 406 ESI significantly improves braking safety – even under difficult conditions. 2 DOT 3, DOT 4, DOT 5.1 3 Brake fluids in accordance with DOT 3 and DOT 4 Strategy Tailor-made products and solutions improve our customers’ applications and processes Global presence ensures reliable supply to customers in all regions We take on the challenges posed by important future issues, especially population growth: scarce resources, environmental and climatic stressors, greater demand for food and the desire for better quality of life. In doing so, we focus on research and development and maintain close relationships to leading companies in our customer industries. We position ourselves globally in order to reliably supply customers in all regions. We invest in the development of innovations that enable our products and processes – as well as our customers’ applications and processes – to make a contribution to sustainability: for example, by allowing resources to be used more efficiently. Our products create additional value for our customers, providing a competitive advantage. We develop new solutions together with our customers and strive for long-term partnerships that create profitable growth opportunities for both sides. In this way, we aim to strengthen our focus on highly specialized applications in the business fields of displays and semi-conductors in the electronics industry, for example. A different business model is pursued for standard products such as vitamins or dispersions for paper coatings. Here, efficient production setups, backward integration in our Production Verbund’s value chains, capacity management, and technology and cost leadership are all essential. We support our customers by serving as a reliable supplier with consistently high product quality, good value for money and lean processes. In the Dispersions & Pigments division, for instance, we draw on our in-depth knowledge of the areas of application and technological innovations to strengthen customer relationships in key industries. At the Caojing site in Shanghai, China, we are planning a new plant for plastic additives (antioxidants), which is expected to be completed in 2019. We are expanding our existing ibuprofen production capacities in Bishop, Texas, and are planning the construction of a new world-scale ibuprofen plant in Ludwigshafen, Germany, scheduled for startup in 2021. back next
