Welcome

^{Letter from the President}

At BASF in Greater China, we evolve with the times and drive transformation through innovation.

Despite the slow global economic recovery and complex geopolitical landscape in 2024, we remain committed to the Chinese market. Due to fluctuations in price and exchange rates, our net sales in Greater China declined slightly to €8.6 billion in 2024. However, the sales volume in Greater China witnessed a 2% growth, demonstrating resilience and steady recovery amid industry challenges.

In 2024, we set a new direction with the launch of the “Winning Ways” strategy. Our ambition is to be the preferred chemical company to enable our customers’ green transformation. In Greater China, we focus on four strategic levers as we steadily move towards this goal.

Focus: rooted in China, expanding in high-growth market

China is the world’s largest chemical market and a key growth driver for the global chemical industry. In 2024, we continued to strengthen our footprint in China, focusing on high-growth market.

The BASF Zhanjiang Verbund site, with a total investment of around €10 billion, is now focusing on building its core, which is expected to be operational by the end of 2025. Upon completion, the Verbund site will offer a diversified product portfolio tailored to the needs of the Chinese market. The low-carbon products made in Zhanjiang will support downstream customers to meet their carbon reduction goals.

At the Nanjing site, the expansion of the advanced additives plant is under construction. The plant is designed to achieve high environmental standards; its innovative production process will set a new benchmark for low-carbon production. At the Daya Bay site, the second polymer dispersions production line started operation in 2024, enhancing BASF’s ability to quickly respond to the needs of industries such as coatings, construction, packaging, and adhesives.

The new strategy also redefined our portfolio management approach. BASF now differentiates between core businesses and standalone businesses. We focus on strengthening our core businesses and growing profitably, while unlocking the full potential of the standalone businesses.

Accelerate: staying agile and innovative

In recent years, the focus of China’s manufacturing industries has evolved from traditional to high-end markets. This transformation has reshaped the demand for upstream chemical products, making more stringent requirements on our abilities to respond promptly and innovate.

To keep pace with our Chinese customers and partners, we have optimized our internal processes and adopted a streamlined, differentiated steering approach to drive business growth. We also embrace emerging technologies, leveraging artificial intelligence (AI) to boost productivity, improve profitability, and accelerate innovation.

We keep advancing our research and development (R&D) capabilities in China. In 2024, the Zhanjiang Verbund site inaugurated its Verbund Technology Center (VTC), an innovation-driven growth engine to accelerate Verbund-related technology transformation and empower made-in-Zhanjiang products. We also opened a new Asia Pacific Application and Technical Center of the Coatings division in Jiangmen, Guangdong last year, making a new focal point on the global technology network for BASF’s automotive refinish coatings business.

Transform: enabling our customers’ green transformation

We are committed to our climate change goals and strive to achieve net-zero emissions by 2050. With that, we continue to expand our use of renewable energy. In 2024, we commenced the construction of the first Sino-German offshore wind farm, a joint investment by BASF and Mingyang. Our Rudong site reduced CO₂ emissions to zero last year. Several of our production sites in Greater China now use 100% renewable electricity.

We also empowered our customers on their transformation journey with our sustainable and innovative solutions. Last year, our Shanghai Polyamide 6 (PA6) plant received ISCC PLUS certification; we explored the use of biomethane in collaboration with Shenergy. Our cross-industry initiatives, such as the “Pioneer Alliance for Zero-Carbon Recyclable Paper Cups”, 100% recyclable TPU shoes, and “Design-for-Recycling” steering wheels, speak for the potential of circular economy in China.

Win: going far with the “Winning” team

Our employees are the cornerstone of BASF's success in Greater China. I am honored to announce that BASF has been awarded China’s Top Employer for the 15^th consecutive year — a prestigious accolade in recognition of our team’s accountability, speed, and improvement mindset. With our Winning Culture and collective efforts from our colleagues in Greater China, I firmly believe, we will welcome many more occasions for celebration.

2025 marks the 140^th anniversary of BASF in Greater China. Over this journey spanning across a century, we have set our root firmly in China by offering innovative products and excellent solutions. With our employees, customers, and partners, we have supported diverse industries and contributed to societal progress. Amid challenges, we remain committed to our purpose — we create chemistry for a sustainable future — and will continue to evolve with a forward-looking spirit.

I look forward to working with all stakeholders to “Go far on our Winning Ways”.