Our Strategy

The chemical industry is a great business to be in, connected to almost everything. It is an essential part of our daily lives and at the root of almost all industries. Enabling our customers’ green transformation is the source of our motivation and will be the key driver for our profitable growth.

Our ambition: to be the preferred chemical company to enable our customers’ green transformation.

The playing field in the chemical industry is changing – so are we. With our new strategy, we are targeting value creation and are changing toward a performance culture. Four winning ways will make our ambition a reality and put BASF on a renewed path to success.

Markus Kamieth

CEO BASF SE

The playing field in the chemical industry is changing – so are we. With our new strategy, we are targeting value creation and are changing toward a performance culture. Four winning ways will make our ambition a reality and put BASF on a renewed path to success.

Focus

Our new strategy sets a clear focus on the management of BASF’s portfolio. Going forward, we will differentiate between our core businesses, consisting of the segments Chemicals, Materials, Industrial Solutions and Nutrition & Care, and our industry-specific standalone businesses Environmental Catalyst and Metal Solutions, Battery Materials, Coatings and Agricultural Solutions. We will apply different value-creation levers to strengthen and profitably grow our chemical core and to unlock the value of our standalones. A new approach to capital allocation based on clear portfolio roles of our businesses will improve capital discipline and cash generation. Enhancing the footprint of our core businesses in China, India and ASEAN will contribute to our future success.

Accelerate

We will simplify and accelerate how we get things done – for example by sharpening roles, by establishing flatter hierarchies, and by dissolving the regional divisions of our matrix organization. To improve our performance, we will further increase the entrepreneurial freedom of our businesses – and with it their accountability for business success. Harnessing AI across the company and in all functions will drive productivity, improve profitability and accelerate innovation.

Transform

We remain fully committed to our climate protection targets and the green transformation of our operations and product portfolio. Going forward, we will focus even more on products with sustainability attributes, where we see customer demand ramping up most. Building on the unique advantages and opportunities of our Verbund, we will increase volumes of recycled and bio-based feedstocks to drive Sustainable-Future Solutions and net-zero measures at scale. Like BASF as a whole, our largest site in Ludwigshafen will benefit from the change and growth momentum connected to the green transformation. Our goal: To transform Ludwigshafen into a leading, sustainable chemical site for Europe and a strong pillar for BASF’s success.

Win

We have the best team in our industry – with great competencies, strong shared values and mutual respect. To ensure BASF’s long-term success, we will further develop our company culture. Stepping up accountability, increasing speed and nurturing a mindset of continuous improvement are at the heart of our Winning Culture.

Two female soccer players celebrate their win

Our financial targets

EBITDA before special items
2028
€10bn-€12bn

Free cash flow
(cumul. 2025-2028)
>€12bn

ROCE
2028
~10%

Capital Markets Day 2024

More information about our new strategy, can be found on our Capital Markets Day 2024 page.