BASF looks to build on Malaysian investment
Germany's BASF expects its newly-launched Asia-Pacific service centre in Malaysia to play a major role in meeting a target of 20% of its global sales in the chemical business to come from Asian markets by 2010, according to BASF executive director Dr Andreas Kreimeyer.
Germany's BASF expects its newly-launched Asia-Pacific service centre in Malaysia to play a major role in meeting a target of 20% of its global sales in the chemical business to come from Asian markets by 2010, according to BASF executive director Dr Andreas Kreimeyer.
In an interview Kreimeyer said: 'We are aiming to see 70% of sales to be generated from production in the region in five years. Some €21m (RM 100m) will be invested in the centre to set up an organisation structure, and transfer staff and services. BASF had, since 1990, spent about €5.6bn to expand and strengthen its operations and r&d network in Asia-Pacific. Together with partners, this amounts to €7bn. In Malaysia we have invested over €1bn.'
These investments have apparently succeeded, with Asia already contributing 16% to BASF's global sales in the chemical business, and 57% of Asia-Pacific sales are produced locally. BASF has 30 wholly-owned subsidiaries and 23 joint ventures in Asia-Pacific with over 9,000 employees. Last year, the company's sales in Asia Pacific amounted to €5.3bn.