German chemicals giant BASF has said it will massively expand its operations in the Asia Pacific region over the next few years. The firm wants to capitalize on the world's fastest growing market.
BASF announced June 4 it was planning to make huge additional investments in the fast-growing Asia Pacific region between now and 2020.
"We intend to invest 10 billion euros ($13 billion) together with our partners to further develop our local production footprint in Asia Pacific," the company said in a statement.
Europe's largest chemicals company aims to make annual sales of 25 billion euros in the region by 2020, accounting for 16 percent of the group's overall sales. BASF noted that the cumulative annual growth rate for chemical production in Asia Pacific was estimated at 6.2 percent through 2020 - well above the world average of just 4 percent.
Bigger slice of the market
"In the next decade, Asia Pacific will face huge challenges while remaining the fastest growing market for the chemical industry," BASF executive Martin Brudermüller said.
The German company said it planned to crate up to 9,000 new jobs in the region as it aimed to produce around 75 percent of its products for Asia locally by 2020. Some 3,500 jobs would be available in the company's rapidly expanding research and development segment on the ground.
BASF noted it would establish additional research facilities for electronic and battery materials, agriculture, catalysts, mining, water treatment, polymers and minerals.
hg/ng (AFP, Reuters)