Basf East Asia Regional Headquarters Ltd.

BASF started doing business in the Asia Pacific region more than a century ago. Today, it is one of the leading chemical companies in the region with a production network of more than 100 sites, and operations in 16 countries.

In Asia Pacific, sales by location of customer were €12.5 billion in 2012, compared with €14.4 billion in 2011. Income from operations (EBIT) declined to €855 million. As of year-end 2012, the number of employees at BASF companies in Asia Pacific totaled 16,406.

In 2012, BASF inaugurated its €55 million Innovation Campus Asia Pacific and new Greater China headquarters in Shanghai, China, marking the company’s most important innovation investment in the region to date. BASF also opened its global mining research and development center in Perth, Australia, and inaugurated the Yokohama Innovation Center in Japan.

New BASF production and technical sites began operation in the region in 2012. New facilities in China include world-scale plants for water treatment and paper chemicals, a polyurethane systems house, a dispersions plant, and a precious metals-based salts and solutions plant. BASF also inaugurated a technical support lab for coatings in India, new laboratories for polyurethanes in Indonesia, and a plant for long lasting insecticide impregnated nets under the social business joint venture BASF Grameen in Bangladesh.

BASF made further progress in its development in Asia Pacific in 2012, with plans to invest €150 million to set up a major specialty chemical production site in Dahej, India. BASF also announced plans to expand automotive coatings production in China, develop a production line for precious metal-based fine chemical catalysts in Mangalore, India, and build a plant in Taiwan to support the metal injection molding industry. BASF is also taking steps to develop a world-scale isononanol plant in Guangdong, China, together with joint venture partner SINOPEC.

Organizational structure:

BASF coordinates its businesses in Asia Pacific via two regional headquarters in Singapore and Hong Kong. BASF operates in 16 countries in six sub-regions:

·      Greater China (mainland China, Hong Kong, Taiwan)

·      ASEAN (Malaysia, Thailand, Indonesia, Philippines, Vietnam, Singapore)

·      Japan

·      South Korea/Mongolia

·      South Asia (Bangladesh, Pakistan, India, Sri Lanka)

·      Australia/New Zealand

The Asia Pacific region is led by Hong Kong-based Vice Chairman of the Board of Executive Directors of BASF SE, Dr. Martin Brudermüller.

Data on key activities in Asia Pacific:

GREATER CHINA

·      7,305 employees at the end of 2012

·      Sales in 2012 (location of customer): approximately €5.1 billion

·      BASF’s business in Greater China includes intermediates, monomers, petrochemicals, dispersions & pigments, care chemicals, nutrition & health, paper chemicals, performance chemicals, catalysts, construction chemicals, coatings, performance materials and crop protection.

·      Main sites:

-       Shanghai/Pudong and Caojing: In Pudong, BASF Auxiliary Chemicals Co. Ltd. (BACC) was founded in 1994 and has been wholly owned by BASF since 2000. BACC produces engineering plastics and specialty chemicals, such as amino resins, pigment preparations, coolants, leather and textile chemicals, and dispersions. In June 2007, BASF also opened a company for polyurethane specialties adjacent to BACC: BASF Polyurethanes Specialties (China) Co. Ltd. operates a system house for polyurethanes, a technical research and development center and a production plant for thermoplastic polyurethanes (TPU). In November 2012, BASF established an Innovation Campus at the Pudong site which is a regional hub for research and development. At the Shanghai Chemical Industry Park in Caojing, BASF maintains two joint ventures with Huntsman and several Chinese partners to produce TDI and MDI, which are key components for the production of polyurethanes used in the automotive and construction industries and in products such as refrigerators, upholstery, mattresses and footwear. The total investment in the project was US$1 billion and commercial production started in 2006.

-       Nanjing, Integrated Petrochemical Site: Founded in 2000,

BASF-YPC Co., Ltd. is a 50-50 joint venture between BASF and SINOPEC, with a total investment to date of US$4.5 billion. The site annually produces 3 million tons of high-quality chemicals and polymers for the Chinese market. The products serve rapidly-growing demand in multiple industries, including agriculture, construction, electronics, pharmaceutical, automotive and chemical manufacturing. BASF-YPC Co., Ltd. successfully started commercial production in 2005 and inaugurated its second phase in 2012. BASF and SINOPEC signed a Memorandum of Understanding in December 2010 to jointly explore the further expansion of BASF-YPC Co., Ltd. The new projects under consideration will extend the C3 and C4 value chains. The new investments under consideration collectively total approximately US$1 billion.

-       Chongqing: BASF is developing a 400,000 mt/a MDI facility in Chongqing, scheduled to begin operation in 2014. Construction began in 2011 following final approval of the project by the China National Development and Reform Commission.

ASEAN

Malaysia

·      1,743 employees at the end of 2012

·      Sales in 2012 (location of customer): approximately €396 million

·      Production sites in Kuantan (Verbund site, 60-40 joint venture with PETRONAS, produces glacial acrylic acid, butylacrylate,

2-ethylhexylacrylate, butanols, dioctylphthalate, 2-ethylhexanol, butanediol, tetrahydrofuran and gamma-butyrolactone), Pasir Gudang (engineering plastics), polyurethane system house in Bukit Jelutong

·      In Kuantan, BASF also produces polybutylene terephthalate (PBT) in a joint venture with Toray.

Singapore

·      730 employees at the end of 2012

·      Sales in 2012 (location of customer): approximately €1.03 billion

·      BASF’s ELLBA Eastern Pte. Ltd formed a joint venture with Shell at Jurong Island, with an annual capacity of 550,000 metric tons of styrene and 250,000 metric tons of propylene oxide.

·      Main products from Singapore: polyurethanes, polystyrene and acrylonitrile-butadiene-styrene (ABS), styrene monomer, propylene oxide, high purity chemicals for the electronics industry

·      In April 2006, BASF established the BASF Global Research Center Singapore for nanostructured surfaces at the Singapore Science Park. In May 2007, there was an expansion for organic electronics.

Indonesia

·      629 employees at the end of 2012

·      Sales in 2012 (location of customer): approximately €503 million

·      Production sites in Cengkareng (polymer dispersions, process chemicals), Cikarang (admixture and cementitious products), Merak (polymer dispersions), and Cimanggis (sodium lauryl sulfate and sodium laureth sulfate)

Thailand

·      648 employees at the end of 2012

·      Sales[1] in 2012 (location of customer): approximately €548 million

·      BASF in Thailand consists of BASF (Thai) Limited and BASF Chemcat (Thailand) Limited.

·      Main production sites in Samutprakarn (polyurethanes system house, construction chemicals and coatings’ technical service center), Rayong (hygiene products, automotive catalysts and fatty alcohol ethoxylate), Chonburi (care chemicals and formulators)

Vietnam

·      138 employees at the end of 2012

·      Sales in 2012 (location of customer): approximately €190 million

·      Head office and production site for construction chemicals, located at Vietnam-Singapore Industrial Park, Binh Duong province

·      Three sales offices, in Ho Chi Minh City, Hanoi and Danang

·      Full range of BASF products supplied to customers in Vietnam, including plastics, petrochemicals, construction chemicals, fine chemicals, performance chemicals, paper chemicals, and crop protection

JAPAN

·      1,309 employees at the end of 2012

·      Sales in 2012 (location of customer): approximately €1.7 billion

·      Wide portfolio from the Chemicals, Performance Products, Functional Materials & Solutions and Agricultural Solutions segments

·      Main production sites in Yokkaichi (thermoplastic polyurethanes and polymer dispersions), Chigasaki (admixtures for concrete, construction chemicals), Totsuka (coatings), Kitatone (personal care ingredients) and Isohara (plastic additives)

·      The Yokohama Innovation Center Japan (engineering plastics) was established in January 2012.

·      The Amagasaki R&D Center focuses on innovative solutions for electronics and energy management, as well as product development and technical services for coatings, inks, adhesives & sealants and packaging industries.

SOUTH KOREA

·      977 employees at the end of 2012

·      Sales in 2012 (location of customer): approximately €1.0 billion

·      Main production sites in South Korea: Yeosu (polyurethane raw materials (MDI and TDI), MNB, CCD, PU System B, Aniline, CCD), Ulsan (expandable polystyrene (EPS), PolyTHF, Polyol, PU system A and pigments), Gunsan (vitamin B2) and Ansan (engineering plastics)

·      Technology centers in South Korea: PU Application Technology Center in Daejeon, Coatings Technical Center in Ansan, Technical Service Center in Shiheung and EMC Application Technology Center in Suwon

SOUTH ASIA

India

·      2,157 employees at the end of 2012

·      Sales in 2012 (location of customer): approximately €1.1 billion

·      Main production sites in India: Mangalore (dyes, dispersions & pigments, coatings and construction chemicals); Ankleshwar (dispersions & pigments, paper chemicals); Thane (textile and leather auxiliaries, polyurethanes and engineering plastics) and Chennai (automotive catalysts)

·      Construction chemicals sites in India: Turbhe, Nalagarh, Bangalore and Kolkata

·      Announced investment of INR 1000 crores in April 2012, to set up an integrated manufacturing facility for polyurethanes, care chemicals and polymer dispersions for coatings and paper. Start of production is planned in 2014.

·      R&D centers in Mumbai and Mangalore. Both are part of BASF’s Global Technology Platform.

·      The Coatings Technical Support Lab in Mangalore (operational since May 2012) supports lab activities including product development, analytical testing, certification and new pigment qualification, catering to the coatings customers of BASF outside of India.

·      Construction Technology Center in Mumbai (inaugurated in August 2012) supports product development and testing of building materials.

Pakistan

·      154 employees at the end of 2012

·      Sales in 2012 (location of customer): approximately €118 million

·      Production sites in Landhi and in Karachi (textile, leather and construction chemicals)

·      Two Technical Application Labs, one each for textile & leather

AUSTRALIA/NEW ZEALAND

·      507 employees at the end of 2012

·      Sales in 2012 (location of customer): €541 million

·      BASF’s portfolio ranges from chemicals to performance products, functional materials & solutions and crop protection products.

Its key customer industries are in the energy and resources, construction, agriculture and food sectors.

·      BASF operates 14 production sites (includes admixture sites) across Australia and New Zealand. Locally manufactured products include construction chemicals, dispersions and pigments, performance chemicals as well as natural beta-carotene and biological seed treatments and crop protection.

·      BASF operates a global mining R&D center at the Australian Minerals Research Centre in Perth. The company also collaborates with Australia’s Cooperative Research Centre for Polymers to develop advanced technologies for soil moisture management.

[1] Includes sales to customers in Cambodia, Myanmar and Laos.

Products/Services

Chemicals, plastics & performace products, agricultural products, fine chemicals as well as oil & gas.

Why we are a green organisation

BASF helps its customer in virtually all industries to be more successful. With its high-value products and intelligent solutions, BASF plays an important role in finding answers to global challenges such as climate protection, energy efficiency, nutrition and mobility.

HOUSING AND CONSTRUCTION - BASF Solutions for Construction of the Future

New buildings, renovation or interior work: In almost all construction projects, raw materials and products from BASF play a role. With energy efficient, economically and environmentally sound solutions from BASF, building contractors and home owners can protect the climate and save costs. Our innovative concepts mean that energy efficient projects like 3-liter houses or even zero-heating cost houses can already be implemented.

MOBILITY - For a Clean Environment

With our modern products for the automotive industry, we offer environmentally friendly solutions that save energy. Our products range from catalysts, particle filters and fuel additives to weight reducing palstics and systems that optimize energy management in automobiles, such as heat reflecting pigments or climate-active seat fabrics. In addition, we are working to develop alternative drive system technologies, such as fuel cells and more efficient lithium-ion batteries.

HEALTH AND NUTRITION - Good Yields and Clean Drinking Water

In collaboration with our biotech partner Monsanto, we have developed a corn that is better able to survive drought conditions. Farmers in the United States are expected to start using this drought-tolerant corn from 2012. In addition to satisfactory harvests, access to clean drinking water is also a major issue. Danish company Vestergaard Frandsen has developed LifeStraw® Family, a portable water purification system. This easy-to-use application, which contains filter membranes made of Ultrason® E, a high-performance plastic from BASF, can convert large amounts of dirty water into drinking water.

ENERGY AND CLIMATE PROTECTION - Environmentally Friendly Energy Sources and Efficiency

We offer a wide range of solutions for climate protection: For example, BASF produces chemicals for solar cells, as well as corrosion protection and entire system solutions for wind turbine rotor blades to help make wind and solar energy more economical in the long term. BASF is also developing insulation materials for the construction industry and lighter plastic components for the automotive industry to help minimize energy consumption.

CARBON FOOTPRINT

BASF is the only industrial company to regularly publish a comprehensive corporate carbon footprint. The results show that BASF products save three times more greenhouse gas emissions than are released in the production and disposal of all products. We want to maintain or even improve this factor of 3:1 in the long term to secure competitive advantages and meet our ambitious climate protection targets.

THE VERBUND

In the BASF Verbund, production facilities, energy flow, logistics and infrastructure are intelligently networked with each other to increase production yields, save resources and energy and reduce logistics costs. A key factor in the Verbund concept is the Know-how Verbund, which encourages the exchange of knowledge among BASF employees worldwide. BASF pools this expertise in research platforms.

BASF supports the chemical industry’s global initiative Responsible Care®.

Please get in touch with Basf East Asia Regional Headquarters Ltd. from the Contact box on the right.