BASF has plan to triple business in the region until 2015

The German giant Basf, which completes 150 years of history in 2015, prepares a new leap of business in South America. In ten years, the chemical company's revenue in the region, whose operations are commanded from Brazil, should reach € 9 billion, equivalent to almost triple the revenue of € 3.5 billion recorded last year. Overall, the company had sales of € 74.3 billion in 2014, and about 5% was generated by the South American operation.
Important impetus will come from the package of € 1.1 billion in investments planned between 2013 and 2017, including the contribution of € 540 million in the complex of Camaçari, Bahia Acrylic. About to be inaugurated, the Bahian project has three factories, acrylic acid, butyl acrylate and superabsorbent polymers (SAP), used in a number of industries, and corresponds to the largest disbursement of German company in Brazil in 104 years of local presence.
the President of Basf for South America, Ralph Schweens, stated that the forecast of growth of three percentage points above the market until 2025 reflects the strategy of launching new products-in the region, sales from innovation developed regionally should reach 3 billion euros that year-and expanding investment.
On the additional ability, told the Executive, though the highlight of the current package of investments is the Acrylic Complex, which earned mention in the report of overall results of 2014, Basf has made contributions in other areas, such as in the expansion of production of agrochemicals in the factory of Guaratinguetá (SP). The company plans still infrastructure contributions, specifically in storage, and the Suvinil, brand of Basf coatings, the bet increases innovation.
About the paint operation in the country-Basf has been operating for 60 years in the market of branded paints Suvinil, and there's no such thing in any other part of the world, the Executive says that one of the main assets is the "young portfolio". The company also produces pigments and additives. "In Camaçari, let's produce butyl acrylate, used in the production of paints. Soon, it makes perfect sense to keep this operation, "he said.
In Bahia, the inauguration of the megaproject, which will use acrylic acid propylene provided by Braskem, should occur in the first half. The expectation is that the investment in Camaçari have positive impact of about $ 300 million a year in the Brazilian trade balance, of which $ 200 million via reduction of imports and another $ 100 million in increased exports. In this way, the project will bring relief, although relatively small, the large trade deficit of the Brazilian chemical industry, which topped $ 31 billion last year.
The venture if it adds to the other 12 industrial units of Basf in the country, where the main area of activity, unlike the global operation, is the agribusiness. In South America, the field is responsible for 33% of company sales, while worldwide the agricultural solutions segment generated, in 2014, only 7% of sales-chemical business and functional materials and solutions segment accounted for the biggest slice of the revenue.
According to Schweens, the current process of weakening of the Brazilian economy does not change the plans for the coming years, but may have some impact on the rate of growth in the short term. "The General plans haven't changed much. We've been 104 years in the country and this is not the first time that Brazil faces a difficult situation, "he said.
According to the Executive, the leadership of Basf in Germany knows that the country's economic development is "uneven" and, although expected stronger growth in the country, "not to panic". In the chemical sector, the reduction of national economic activity was reflected in fall of 1.87% of production in the first quarter, 1.05% reduction of domestic sales, shrinkage of 0.4% of the national apparent consumption (CAN) and low of 5.7% on imports, according to data from the Brazilian chemical industry association (Abiquim).
The command of the German giant, on the other hand, is aware of the opportunities in the area of Biochemistry, in the face of high biomass supply in Brazil. "We are very interested in the subject. The message that I send for Germany is that if any industry can develop the biomass sector, is Brazil, "said Schweens. This potential, Basf maintains contact with the GranBio, owner of the first cellulosic ethanol plant in Brazil and intends to move forward on the biochemical area.
One of Basf's global goals until 2020 is to adapt all its chemical solutions to sustainability criteria. To this end, the company released in 2011 the program "Sustainable Solution Steering", which provides for the classification of your entire portfolio of products into four categories according to the customer service standards of sustainability. "There have been cases of withdrawal of the product portfolio," said the Executive, ressaltanto that Basf was the first chemical company to do this exercise.