Focus Asia. Asian boom! Shanghai by night.

Similar documents
Innovative solutions for key industries

BASF The Chemical Company. Dr. Sven Fleischmann Research Scientist Lab Team Leader

AS IMPORTANT FOR TODAY AS FOR TOMORROW- RESPONSIBLE SOLUTIONS

Additional information about Neopor. Brochure: Neopor Innovation in Insulation. Application brochure: Wall Insulation

Competencies of BASF packaging

Page 2 Meet Management in Tokyo November Bayer MaterialScience. Patrick Thomas CEO of Bayer MaterialScience AG

BASF Monomers Division Excellence in Commodities

THINKING ABOUT TOMORROW ALREADY TODAY RENEWABLE SOLUTIONS PAY OFF

Agricultural Solutions

IAL Consultants CP House, Uxbridge Road Ealing, London W5 5TL UK Tel: Fax:

CSR und Umweltschutz in der Supply Chain der

Sketch Corporation. Manufacturer of Inorganic Adhesive Binder Opens new horizons in Nanotechnology Functional Coating Development CORPORATION OUTLINE

Green stands for hope says an old saying. Green environmental technologies, however, mean a great deal more: they are the future.

Sustainable Polyurethanes and Polycarbonates from biobased aromatics. Don S. Wardius Covestro LLC. Natalie Bittner Covestro Deutschland AG

Polyurethane: A key contribution to resource and energy efficiency

RE: Technology Executive Committee call for inputs on technology road maps; experiences and lessons learned from road map development

Ultramid Designed for films

Bayer CEO Wenning at the inauguration of new production facilities in Shanghai

Supply Chain Requirements in a VUCA world - volatility, uncertainty, complexity, ambiguity -

Flachdächer. Karl-Heinz Schmitz. Reprint. Ernst & Sohn Special. April 2017, p A 61029

AMERICANS LEADS THE WORLD IN CAR OWNERSHIP, CHINA AND INDIA FAST CATCHING UP IN ABSOLUTE NUMBER OF CARS OWNED

BASF our experience in China. Joerg Wuttke, BASF China April 2005

Today I will explain our progress and business strategy.

Automotive Heat Management Solutions. The smart way to improve fuel and energy efficiency

BUILDINGS without ENERGY BILLS

For nearly 50 years, and in more than 100 countries, our 10,000 associates have been using science and ingenuity to create innovations that play a

In the Midst of Changing Times Revolutionary Technology and Products Driving Corporate Evolution

Digitizing dairy in China

How to build a skyscraper in two weeks

Contribution to Global Warming Prevention by IT Solutions

Innovation building the future today

We drive sustainable solutions Innovations for a sustainable future

Energy Efficiency 2017

Scapa Photovoltaic Range. Solar Module Solutions

President & CEO of the MANN+HUMMEL Group. Speech on the occasion of the financial press conference on

Certified Compostable Applications

Energy Efficiency as an important building block for Saudi Vision 2030

Engineering: Globally connected to drive technical solutions

Asia Pacific. Patrick Williams. Senior Vice President, APAC Autodesk

Dr. Ulrich Reiners International Trends in Plastic Packaging and Processing

Passive Houses Worlswide: International Developments

Press Release. Plastic Additives: Jointly enabling the future of plastics. Press conference K 2013 June 25 and 26 in Ludwigshafen

SAVE THE ENVIRONMENT BY BUILDING ECOLOGICAL PASSIVE HOUSES

Ortiz Oscar 1, Castells Francesc 2, Sonnemann Guido 3

Styrene: A Building Block for Essential Products

Figure : Trends in Production/Consumption of Coal in Asia. Figure : Trends in Production/Consumption of Oil in Asia

GF Automotive Passion for your Lighter Future

Sustainable profitable performance Innovation for the success of our customers Safety, health, environmental responsibility

Victor Zhou, International Copper Association. Copper Production, Flow and Usage in Southeast Asia Current and Future

ALLIANCE FOR WORK AND ENVIRONMENT

Japanese Energy Efficient Technologies

Getting Smart Answers! Kevin W. Chiu. Siemens AG

ACOTEC. Acotec panel production D /EN/E 1(14) PROCESS DESCRIPTION ACOTEC PANEL PRODUCTION

25 years of Passive House! An international solution for sustainable and energy efficient buildings

Materials Efficiency Workgroup. A glace at the past and a wish for the future

THE 3-LITER-HOUSE AN INNOVATION IN THE MODERNIZATION OF OLD PROPERTIES

Annual General Meeting of Fresenius SE & Co. KGaA on May 13, Speech of Dr. Ulf M. Schneider, Chairman of the Management Board

Building Thermal Insulation Market by Material (Wool Insulation, Plastic Foams and Others) and Application (Roof, Wall and Floor) - Global Trends &

World Plastics Additives Market. Volume I

COMPANY PROFILE HISTORY

Innovation Ecosystem for a Smarter Planet

Extended producer responsibility (EPR) and job creation in Korea

Placed to Win Emerging Nations Set to Shake Up Natural Order

Discover a highly transparent Thermoplastic for eye-catching Applications: STYROLUX 3G46

Saft services Get more from your battery systems

Solution Provider. Implementing Innovative Ideas. Success Stories of Benchmarking & Proposals

BSRIA Heating. Worldwide Market Intelligence

I will talk about the following three points of Panasonic business strategy.

Resources, Environment and the Global Energy Crisis:

PRESERVE ENGINEERING PLASTICS SOLUTIONS FLUID BARRIER

Business and Corporate: Globally connected to achieve success

Biology 112 Introduction to Ecology. QUIZZAM Energy. Chapter Number 10

NEW! PLUS. Free. Hot. Water. Solcrafte COATING. The first compact hot water solar system

Making a Difference One Watt at a Time

BMW Group Investor Relations.

POLYURETHANE CHEMICALS AND PRODUCTS IN ASIA PACIFIC (APAC) 2017 Part of IAL s Global PU Database Price

Transforming visions into realities. Compostable polymers with biobased content

JAPAN + ASIA-PACIFIC BEST OF THE BEST ADOBE DIGITAL INSIGHTS 2017

Our Commitment to Sustainability

Environment. Priority Areas

Analysis of Transboundary Movements of Hazardous Wastes and Other Wastes in Asia

Equal Energy Access: The Power of Coal September 14, Gregory H. Boyce Chairman and Chief Executive Officer Peabody Energy

Present Situation and Growth Strategy in the Automotive Materials Business

RESIST. THERMAL MANAGEMENT by

Swire Cold Storage Vietnam Modernising cold chain storage in Vietnam

Launch of CCAC MSWI Asian Component

Röchling Continues to Grow

Organics Recycling Best Practices

International Trends in Green Consumption and Procurement

Chinese Insulation and Energy Saving Material Industry Development Plan for the 12th Five-year Program

Glaciers are melting, sea levels are rising, cloud forests are drying, and wildlife is scrambling to keep pace.

WHERE ARE THE TIRE TRACKS LEADING US TO?

PRESERVE. FLUID BARRIER by

The goals for renewable energy share of all energy

Global Ocean and Atmosphere Temperature Trends Compared

IPEEC SUBMISSION to ADP

Analysis of Transboundary Movements of Hazardous Wastes and Other Wastes in Asia <The Second Version>

Indicators to monitor energy efficiency progress: the IEA experience

Indonesia s Energy Requirements Part One: Current Energy Dynamics

BBC Learning English Talk about English Insight Plus Part 6 Oil

Transcription:

Asian boom! Shanghai by night. 6

Innovation from tradition BASF has been in Asia for 110 years / Plastics achieve their highest sales in Asia 7

Everything at BASF started with dyes: in the 19th century, labels had to be as colorful as possible. The construction of BASF s Verbund site in Nanjing, China (2003). The steamcracker built there has a capacity of 600,000 tons. ài lì sè It was with these characters that BASF entered the Asian market in 1885. The man who loves decency is what these characters mean and, back then, they were chosen to translate the name A. Ehlers. This was the name of the company that first came to represent BASF in Shanghai, China, in 1885 and that sold mainly BASF dyes. Back then, BASF was just twenty years old, but it already recognized the opportunities that Asia had to offer. Even today, BASF can still identify with : BASF continues to stand for soundness and reliability, which are both elements of decency. Great innovative capacity and interaction with customers based on partnership this is the key to our success. Today as well as in the past, explains Dr. Martin Brudermüller, member of BASF s Board of Executive Directors and responsible for the business with plastics and for the Asia-Pacific region (more on this in the interview, page 12). The very first production facility that BASF built in Asia was a plant in Yokkaichi, Japan, to produce Styropor, which had just been developed. The plant went into operation in 1963: at that time, people in Japan realized that there was a huge market for this white foam for packaging fresh fish. Number of employees in Asia rises by 30 percent In 2008, 123 years after its first beginnings in Shanghai, BASF recorded sales of 9.3 billion euros in Asia, 28 percent of which came from plastics. The importance of Asia for BASF can be seen in the Asia-Pacific Strategy 2020, where it says that BASF is planning to invest two billion euros in the region by 2013. A large portion of these investments is earmarked for the plastics business. For instance, we intend to build a 400,000-ton plant for MDI, an intermediate for polyurethane, in Chongqing, China, explains Brudermüller. About 15,000 employees currently work in the Asia-Pacific region, which also includes Australia and New Zealand. At least another 5000 employees will be hired by 2020. Asia is booming and the economic crisis has not changed this. Europe and the United States are still the driving force of the global economy. A comparison can illustrate this: the GDP of the European Union is about U.S.$18.4 billion, that of the United States is U.S.$14 billion and that of China is U.S.$4.4 billion. But countries like China and India are catching up fast. Nowhere else in the world are the growth rates of the domestic markets so high since hardly anywhere else is there such a pentup demand for consumer goods. More and more often, the innovations come from Asia In 2009, for example, people in India and China ordered 60 percent more flat-screen TVs made by the South Korean manufacturer LG Display and the number of cars sold in China rose by 16 percent. Asian companies are at the forefront when it comes to technologies of the future. Chinese factories already produce 30 percent of all the solar collectors used in the world and they are leaders in the production of lithium-ion batteries used for electric cars. In the coming years, China plans to invest U.S.$1.6 billion in the development of alternative fuels while, at the same time, the amount of energy har- 8

An employee at the acrylate plant in Kuantan, Malaysia. vested from wind farms in China will double. The future-oriented Tata Nano from India has demonstrated how affordable mobility can be achieved. The dynamics in China are incredible and work is done at breakneck speed, raves Frank Reil, Senior Manager Asia Pacific, Technical Marketing. At the same time, there is still an enormous backlog demand for plastics in automotive construction in China, India and even in Japan. This applies especially to engineering plastics such as polyamide, which have to withstand extreme loads in the engine compartment. It is precisely in these demanding applications that BASF can come to the fore with its high level of technical expertise. Automobile industry the driving force for BASF plastics In Korea, the first Ultramid intake manifold was installed in a Hyundai Excel already in 1995, with Japan following in 1996 with a plastic intake manifold for the Toyota Mark 2. In Europe, each car contains about 20 kg of polyamide. In Korean cars, this figure is 15 kg, and in Japan it is 8 kg, while in Chinese cars, it is just 5 kg, explains Reil. For BASF experts, the amount of polyamide found in the engine compartment is a measure of how advanced a particular plastics market is. The technical performance of a plastic used in the engine compartment is extremely important: if an intake manifold or stabilizer made of polyamide does not do its job, then the entire car no longer works. This is why the development of a component for the engine compartment is particularly laborious and demanding. When a company decides to undertake such a time consuming and cost intensive development step, then it can be assumed that it is also high time for other companies to welcome other innovative and technically sophisticated solutions in plastic. In other words, wherever there is a market for intake manifolds or stabilizers made of Ultramid, there will soon be new opportunities for BASF s highly specialized plastics. This is why BASF is now offering innovative instruments such as ULTRASIM, a computer-assisted component development method, directly in Asia. Weight-reducing plastics in the engine compartment are indispensible for small, fuel-efficient vehicles. This is why Tata is installing an intake manifold made of Ultramid in the Nano. The cooperation between BASF and Tata is not limited to polyamide: BASF specialists have developed a new catalytic converter that drastically reduces the emission of pollutants from the exhaust fumes; the coating of the Nano and the polyurethane used for the seats are also from BASF. Innovative products, services and efficient processes are especially important in order to support a project like the Nano, explains Hermann Althoff, in charge of managing the cooperation with the Asian automotive industry. Plastics save energy and slash emissions The rising demand for plastics in cars is a global trend. In 2020, plastics will account for 25 percent of the weight of a car, to the benefit of the environment: each kilogram that is saved in the manufacture of a car alleviates the burden on the environment by 25 kg of carbon dioxide in the form of exhaust fumes over its entire service life. BASF plastics used for the insulation of buildings save energy in the construction sector. BASF foams help to keep a house warm or cool, depending on the climate zone. For this purpose, BASF offers Neopor, Styropor and Peripor as well as several types of polyurethane in Asia (in this context, see the article on the passive-house study on page 16). Worldwide, a large portion of the primary energy generated is needed to heat private homes. In Germany, for example, one-third of the energy is used for this purpose, accounting for more than 20 liters of heating oil per 9

The number of BASF employees working in research & development in Asia is going be doubled. square meter per year in a multi-family old dwelling. This has consequences, not only for the occupants, since their heating costs keep going up as the price of raw materials rises, but also for the environment, since heating generates considerable amounts of the greenhouse gas carbon dioxide (CO 2 ). The same applies when it comes to cooling a house: in a wellinsulated house, the energy consumed by air conditioners to cool and remove moisture from the air is reduced by up to 50 percent. Saving energy is a top priority for many Asian nations. China, for instance, approved a five-year plan in 2008 stipulating that energy efficiency has to be raised by 65 percent. With two billion square meters of living space constructed in China every year and 40 billion square meters in need of renovation there is great potential for environmentally sound insulation.

BASF showcases energy-efficient solutions for urban living of the future at Germany s promenade in Nanjing, China. BASF built a three-liter house in Yongin (Korea) in 2005, showcasing not only stateof-the-art thermal-insulation technology but also additional innovations such as special window systems and room ventilation systems aimed at CO 2 reduction. In comparison to a similar conventional house, the 3-liter house in Korea reduces CO 2 emissions and energy consumption by about 80 percent, explains ChungMin Ha, responsible, among other things, for the marketing of Neopor in Korea. 2006 saw the exemplary renovation of a 5-story residential building in Shanghai, converting it into a low-energy building. Neopor, the expandable polystyrene (EPS), played a crucial role in both of these projects. This material, which is a refinement of Styropor, accounts for a 20 percent higher insulating effect, even though the panels have the same density and thickness. Neopor s outstanding insulating properties and the associated energy saving potential earned it the Energy Award for Green Building of the Korean Consumer Protection Association (CACPK) in 2006 in Korea. Changes in consumption patterns influence packaging Another focal point of BASF s activities in Asia is the packaging sector. In this market, BASF sells polystyrene, Styropor for packaging products such as household appliances, also polyamide and Ecoflex and Ecovio, BASF s biodegradable plastic for films. The higher the level of urbanization in the Asian countries, the more purchases are made in supermarkets, reports JaeYoung Lim, in charge of the Asian Ultramid customers (PA) in the sector of film extrusion. Goods in supermarkets have to be packaged in a different way than the goods at a farmers market. This is where our Ultramid comes into action. This BASF polyamide is an integral part of multilayered films used for packaging meat and sausages. It is very transparent and imparts good barrier properties to the film. Lim goes on to say, BASF anticipates large sales increases in this market. The catchword Bio is used as a sales pitch among consumers in Asia as well. Ecoflex and Ecovio, BASF s two biodegradable plastics, benefit from this. In Thailand, for instance, we have recently been working with the German Association for Technical Cooperation in a project aimed at introducing Ecoflex bags for composting biodegradable waste, says Ross Kung, Product Manager for Biopolymers. Mulching films that can be plowed under and are used in agriculture are another target segment for biodegradable plastics. Anyone who uses cell phones, computers or entertainment electronics notices on a daily basis that most communication and electronic devices are made in Asia. When it comes to computers and the like, BASF has a lot to offer, especially in the realm of styrene-based plastics such as polystyrene, ABS (Terluran ), SAN (Luran ) and MABS (Terlux ). Almost 90 percent of BASF sales in this market are in Asia. LG, for example, uses the high-gloss Terluran for its flatscreen TVs. Be it for cars or computers, for thermal insulation or plastic films, BASF not only wants to produce its plastics on site but also to develop new projects with customers directly in Asia. For this reason, we are going to more than double the number of employees working in research and development in Asia, explains Brudermüller of the Board of Executive Directors. The number of system houses for polyurethanes and the applications technology centers for engineering plastics has been growing steadily for quite some time. Brudermüller elaborates, Our concept for the future calls for cost-efficient production on site and for developments from Asia for Asia. 11