BASF, a low-key, chemical giants most end-consumers are not very familiar with, but the company is almost 'everywhere', from the surrounding vitamins, athletic tracks to large quantities of pesticides, car bumpers and even bike sharing tires and more In the commodity sector, BASF is not only involved in chemical products, but also has the upstream oil and gas business. BASF vertical integration of the industrial chain, middle and lower reaches, and eventually can produce and sell nearly 10,000 kinds of compounds in the middle reaches.
In 1885, the manager of a German company traveled far and wide to the land of China. With a mission to persuade the Chinese to believe in the advantages of BASF dyes, he took the fate of BASF and China.
That year was the year of BASF's twentieth year, with the passage of time.Nowadays, Greater China has become one of BASF's most important markets in the world and at the same time it has become an innovation hub in the Asia Pacific region. BASF President Asia Pacific, Greater China President and Chairman Dr.Stephan Kothrade said BASF's total investment in China has reached 6 billion euros and will continue to be optimistic about the Chinese market in the future.
R & D focus falls on Shanghai
BASF's business in China has been continuously expanding and deepening in the light of time. In 1982, BASF decided to directly manage its business in China and established a subsidiary in Hong Kong, BASF China Ltd. In 1986, BASF established a A Joint Venture: Shanghai Gaoqiao BASF Dispersion Co., Ltd., produces styrene-butadiene latex for coating the paper and carpet industries, and has since entered into operation with several BASF joint ventures and wholly owned enterprises.
In 2000, BASF and Sinopec Corp. (Sinopec Corp.) jointly established Yangzi Petrochemical-BASF Co., Ltd. (hereinafter referred to as "Yamba") in Nanjing, a joint venture in Nanjing. In 2004, BASF began centralized management China business, and Greater China headquarters moved to Shanghai.
BASF expanded its business in China steadily as its business continued to grow despite challenging market conditions in 2016. As the third largest market for BASF Group, BASF in Greater China achieved sales of 5.9 billion euros. Dr. Cadivin told reporters: 'We continue to invest in local production capacity concentrated in production bases in Shanghai and Nanjing to meet the needs of downstream customer industries.'
Undoubtedly, China is still unknown to BASF more than a hundred years ago, and now China has grown into an indispensable part of BASF. In fact, BASF has long been the largest foreign-invested enterprise in China's chemical industry.
For the Chinese market, Dr. Cody has his own clear strategy, in which production, R & D, product portfolio management and marketing will be BASF's important starting point in China.After decades of rapid growth, the Chinese market volume Has been very large, taking into account the vast territory of China, BASF on the Chinese market conducted a comprehensive business layout.
'We have expanded our production network in Western China to Korla in Xinjiang and gradually increased the capacity of Chongqing's MDI production base and the Guangdong Maoming Isononanol (INA) production base jointly established with Sinopec Corp. At the same time, we are enhancing our local network and product portfolio with growth through asset acquisitions both at home and abroad, "said Dr Cordeven.
As a leader in the global chemical industry, what kind of strategy does BASF expand its business in China? In this regard, Dr. Cordeven said that BASF first considered the There is no important local industry support.In addition to taking into account the cost of transporting chemical raw materials, but also to consider the availability of raw materials.The third is whether BASF has a local production base, and BASF can produce existing production assets Synergy.
Therefore, Dr. Cody Wen further told reporters that 'BASF R & D focus will still fall on Shanghai, the specific circumstances of the production layout may be more complex.At present BASF's main production capacity layout in Shanghai and surrounding areas, as well as Nanjing Chongqing. '
Just recently, BASF, which is constantly optimistic about the Chinese market, announced a series of new rounds of investment in China.At present, a new world-class automotive paint production plant with a total investment of 140 million euros was completed in Shanghai Chemical Industry Park in Caojing And its world-class chemical catalyst production plant has also been officially completed in Shanghai, the reporter learned from BASF, which is BASF's first set of chemical catalysts in the Asia Pacific production plant.
Vertical integration strategy
It is hard to ignore BASF's corporate vertical management strategy of "vertical integration." Initially, BASF was just a company that produces coal tar and one of its founders, Friedrich Friedrich, For a long-term success, BASF takes pride in having amassed high-quality production of raw materials and precursors (precursors of chemical raw materials and further synthesis of precursors), aided by their own efforts in chemical research. The concept of 'verbund' (in German, meaning 'integration') unfolds in China.
Dr. Cadivin told reporters: 'The core concept of integration is that the products, by-products and even wastes in a reaction device become the raw material and energy for the next reaction device.'
When subcontracting and crowdsourcing became recognized as cost management solutions for companies worldwide, BASF has been implementing the concept of integration: 90% of its raw materials are supplied by itself; from the most basic chemical raw materials to high-end chemical products, BASF The long tail of the full industrial chain; even decentralized multinational companies decentralized throughout the procurement authority, BASF is also through the global procurement integration team to recover.
After more than 100 years of development, the integration of BASF has become clearer: research and production are co-located and production equipment, energy, logistics and infrastructure are reasonably connected; production from a common source, a factory's products or by-products may become The next factory raw material through this interlocking mode of production, in the vertical integration of the production chain to achieve low energy consumption and high productivity, create economies of scale and create added value. Integration also for BASF more flexible response Economic fluctuations, industry cyclical and changing market demand has provided a guarantee.
The integration system is one of BASF's biggest strengths, with integrated production facilities, where production facilities are connected intelligently through the pipeline network, which not only significantly reduces the cost of transportation and logistics of chemicals but also saves raw materials and energy and gives full play to their synergies Effect. 'Integration can achieve the energy linkage effect, reduce energy waste,' Dr. Cody said.
To Yang Pakistan base, for example, Ke Diwen told reporters that as BASF and Sinopec joint operation of the base, there are a total of Yangba base a number of devices, these devices for the production of the necessary power, 1/3 Resulting from waste heat generated during the production of other plants in the production base, resulting in a total energy consumption reduction of 33% .Also, basically a natural gas-based CHP was realized in the Yangba integration base. By cogeneration, In addition to a substantial increase in energy efficiency, it also reduces carbon dioxide emissions. "Through the integration of cogeneration and energy use, BASF can reduce carbon dioxide emissions globally to 6.6 million tons."
Traditional industries of innovation
As a traditional chemical company, when BASF released the slogan of "Creating a New Chemical Role" in 2011, it once said that contemporary chemical industry innovation has seldom relied on the development of new chemicals.
BASF hopes to create new materials and system solutions through a combination of disciplines.
Dr. Ke DiWen told reporters, 'BASF important factor in maintaining success is to continue to innovate in the downstream market, BASF has gradually get rid of the image of traditional chemical manufacturers, with their experience and innovation and customer cooperation, embedded in its R & D and production processes For example, BASF partnered with OFO to launch a bi-layered "Little Hornet" bi-layer tire system made with BASF's Elastopan® polyurethane (PU).
BASF has long noticed the vigorous development of the Chinese light vehicle market and its deployment in this area through innovation, and BASF has introduced emission catalysts for Geely Automobile to reduce environmental pollution by using less precious metals.
The process of direct infiltration of downstream products by a chemical company is rare, but the job is a breeze for BASF: whether it's making a complicated car or a seemingly simple bike, the functional materials and chemistry required for these products Almost all products by BASF.
In addition, in the area of white biotechnology, BASF is studying efficient, resource-efficient methods and processes for chemical and biochemical products, and fermentation and biocatalysis technologies are becoming increasingly competitive alternatives to chemical processes .
Due to constant innovation and integration with downstream businesses, end-consumers are almost ubiquitous, though not very familiar with BASF.