BASF plans to strengthen its position as a leading chemical company and released further details on its “We create chemistry” development plan.
BASF Chairman Dr. Kurt Bock, Vice Chairman Dr. Martin Brudermüller, and CFO Dr. Hans-Ulrich Engel presented the details at a press conference in Ludwigshafen, Germany, this week.
BASF sees population growth as brining enormous global challenges while offering many opportunities, including for the chemical industry. BASF will play a role with regard to conserving resources, ensuring healthy food and nutrition, and improving quality of life.
Profitable growth. BASF forecasts global chemical production will grow faster than global gross domestic product (GDP) through 2020. BASF expects the global economy to grow by 3% on average per year - slightly faster than in the last 10 years – and forecasts chemical production to grow on average of 4% annually. BASF aims to grow 2 percentage points above chemical production and thus increase sales 6% per year on average until 2020. Overall, BASF targets sales of about €115 billion in 2020.
“We…will continue to develop our portfolio in the direction of customer-focused businesses,” explained Brudermüller. In 2020, sales of €30 billion and an EBITDA of €7 billion are to be generated with products that have been on the market for less than 10 years.
Furthermore, sustainability is becoming one of the main drivers of growth and value creation. “More sustainability can only be achieved through innovation – and that is where chemistry plays an essential role,” said Brudermüller. In the future, sustainability will therefore be more strongly integrated into business decisions.
BASF’s sales to customers in emerging markets have almost tripled in the past 10 years. In 2020, the company expects current emerging markets to contribute 45% to sales. Investments will boost the company’s future growth.
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