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Germany’s BASF to tap emerging markets in Asean
German chemical giant BASF SE, sees good growth potential for its products in the Asean region, both in established markets and newer emerging areas like Vietnam, reported Malaysian business daily theStarBiz.
The daily quoted BASF Southeast Asia Pte Ltd managing director Yee Boon Yeow as saying that the company’s strategy for the region, moving forward, was to be more industry-focused with innovative solutions.
“We want to develop deeper engagement with our customers and provide customised applications that are a perfect fit with market demand,” he said in a statement.
BASF was well-positioned for continued growth in the region with a global research centre in Singapore and a joint-venture operation in Kuantan, he added.
Yee, also managing director for BASF (M) Sdn Bhd, said the Malaysian operations chalked up 250 million euros in sales last year, contributing 17 percent to the group’s total Asean sales.
“Malaysia is one of the significant markets in Asean as we build one of our verbund sites in Kuantan, supplying products to customers in the Asean region,” he said, adding that Asean contributed 16 percent to the group’s Asia-Pacific sales last year.
On BASF Asia Pacific site optimisation project, BASF SE executive director Martin Brudermuller said it focused on operational excellence and how much the company could save by reducing variable and fixed costs, re-engineering processes and maximising process standardisation.
The group’s operations in Kuantan, Pahang, and Pasir Gudang, Johor, are two out of its nine largest production sites in Asia involved in the project.
“We expect an annual contribution margin of at least 100 million euros annually by 2012 across the region,” he said in a tele-conference held in Hong Kong recently.
BASF plans to invest two billion euros in the Asia-Pacific between 2009 and 2013, he added.
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