Basf invests to expand capacity in Brazil

Basf intends to invest almost € 50 million (about US $ 140 million) to raise the production of agrochemicals in Brazil until 2014, said the President of the crop protection division of the company, Markus Heldt.
The resources will be used in the construction of two new plants in the company's industrial complex in Guaratinguetá (São Paulo), where should be formulated two new chemicals used to combat weeds and fungal diseases for the Brazilian market. The prediction is that the plants come into operation in June of next year. Basf is also completing the expansion of the factory which synthesizes the fungicide Boscalid, used on crops such as canola, coffee, cereals, fruits and vegetables. Guaratinguetá is the global platform of production of the active ingredient.
Heldt says the Brazilian defensive market, which grew at double-digit rates in recent years, must keep the pace strong for a period long still. According to him, the expansion of the cultivation area, the replacement of old pesticides by more modern products and the search for productivity gains should ensure expansion.
Not even the proliferation of generic products, which accounted for more than 60% of chemical pesticides consumed in Brazil last year, seems to shake this optimism. "We believe in innovation and we invest a lot of money at it. In the long run, we will win this fight. "
Basf's optimism regarding the thread can be expressed in numbers. In addition to the € 300 million per year in increased capacity, the company has approximately €430 million in research and development of new products in 2012. "The chemical business is the large sales of Basf propellant for the agricultural sector in the coming years," said Heldt.
As well as its main rivals in the defensive segment-Bayer CropScience, Syngenta, DuPont and Dow AgroSciences –, the German multi broadened their investments in biotechnology, eyeing the lucrative market for transgenic seeds. However, spending on research in the area-who came to € 180 million in 2012-will hardly rival those for developing new chemicals.
"Our long-term strategy aims to build a platform of complementary solutions, including pesticides and GMOs, as well as organic products. Resources spent with P&D will grow as a whole in the coming years, but the balance between the two areas will probably stay on the porch of 2012 ", said Heldt.