Letter from the president
Our business success in China now and in the future is based on not only profit, but also creating value for the economy, the environment and the society. That is why sustainability is firmly anchored into our organization, governance and our business models.
In a year marked by volatility from trade conflicts and the decline of key industries, we have maintained and developed our business: BASF posted sales of over €7.3 billion in 2018 to customers in Greater China.
To meet the growing needs of quality growth in China, we are expanding our innovation scope and enhancing our competencies. From catalysts that reduce mobile emissions to energy-efficient building materials, and to nutrition ingredients that benefit health, chemistry-based solutions from BASF are improving people’s quality of life while contributing to the sustainable development of China.
From procurement to production at various plants, and to product delivery to the customers, BASF has introduced a sustainability-oriented supply chain management system. In 2018, we continued to source responsibly via industry initiatives and to strengthen suppliers’ awareness. With the implementation of digital technologies, we improved our logistics efficiency and transparency.
Sustainability in production means we produce both safely and efficiently. By doing so, we minimize our impact on the environment. In 2018, we managed to maintain low, stable emissions to air and water, even though we started several new production facilities at several sites. This was achieved with continuous improvements of processes and technologies.
We continue to support the sustainable growth of the local communities where we operate. Therefore, we have regular open communications with our stakeholder groups and we conduct various educational activities to contribute to the society.
We remain committed to investing in China. We plan to invest into a second Verbund site in China, to be located in Zhanjiang, Guangdong, operated under the sole responsibility of BASF. We also plan to further expand the existing 50:50 joint venture, BASF-YPC Company Limited (BASF-YPC) with Sinopec in Nanjing. In addition, we started new plants to strengthen our local production capabilities and offer various products and solutions to the market.
Last year, we launched our updated corporate strategy. According to the strategy, we aim to grow both profitably and sustainably. It sets both financial and non-financial targets, with a renewed focus on customers and well-defined action areas. It also emphasizes the importance of China as the world’s largest chemical market and growth engine.
2019 is a year of uncertainty and transformation. Therefore, we will put our customers in the focus of everything we do, collaborate more closely with all stakeholders, and contribute to a sustainable future. We will continue to create shared value for our customers, employees, and society as a whole.
Dr. Stephan Kothrade
President Functions Asia Pacific
President and Chairman Greater China, BASF