BASF aims to continue growing faster than the market with its downstream plastics, as well as large-volume monomers and commodity polymers, said the producer in its press-release.
By bundling all specialty polymers in the newly created Performance Materials division, the company has further strengthened its focus on the needs of its customers.
BASF is investing not only in its specialty business but also in basic products required for the specialty polymers business, for example methylene diphenyl diisocyanate (MDI) and toluene diisocyanate (TDI). BASF is currently constructing world-scale MDI and TDI production plants. An MDI plant with an annual capacity of 400,000 metric tons in Chongqing, China, is scheduled to start production in 2014 . A TDI plant with an annual capacity of 300,000 metric tons is also planned to go on stream in 2014 in Ludwigshafen. Integration into the BASF Verbund structure enables a high level of supply security and cost leadership in MDI and TDI, which is a crucial advantage for BASF’s downstream specialties too.
BASF is strengthening its specialty polymer business with a number of investments. These include expanding production of engineering plastics in Ludwigshafen and the acquisition of Mazzaferro’s polyamide polymer business in Brazil. BASF started construction of a new manufacturing plant for the high-performance polymer Ultrason in Korea in 2012. The company is expanding thermoplastic polyurethane production capacity at the Lemforde site. In Ludwigshafen, the production capacity for the innovative insulation material Neopor is being expanded.
The increasing use of biopolymers presents another growth market. BASF plans to expand its business in this area. "We are currently stepping up research into a biodegradable, primarily biobased foam with properties similar to those of polystyrene foam for use as packaging for food and electric and electronic goods,"said Brudermuller.
The main driver of profitable growth is innovation. BASF’s spending on research and development hit another record high of EUR1.7 billion in 2012. "We will create key future innovations not only with new polymers but, above all, with novel functional materials and system solutions. BASF has an excellent technology and skills portfolio in polymers and additives that we have enhanced even further by the Ciba and Cognis acquisitions," said Brudermuller. BASF has combined its polymer and additives research in a single technology platform and developed it into the division Advanced Materials & Systems Research.
BASF is the largest diversified chemical company in the world and is headquartered in Ludwigshafen, Germany. BASF produces a wide range of chemicals, for example solvents, amines, resins, glues, electronic-grade chemicals, industrial gases, basic petrochemicals and inorganic chemicals. The most important customers for this segment are the pharmaceutical, construction, textile and automotive industries.