A Comprehensive Introduction to BASF, a World-Renowned Enterprise
BASF's headquarters is in Ludwigshafen and it has more than 350 branch plants and companies in 39 countries. Among them, there are more than 60 production sites in Germany, located in cities such as Ludwigshafen, Muenster, Hamburg, Stuttgart, Mannheim, Wuerzburg, and Cologne. The BASF Group headquarters and BASF SE in Ludwigshafen are like a 'small city,' covering an area of 7 km2. This 'small city' has 1,750 buildings, 100 km of streets, 200 km of railway tracks, 2,500 km of pipelines, and 5 power stations; in addition, BASF has its own hospital, travel agency, and railway station. A total of 55,000 employees work in Ludwigshafen. BASF SE is the largest enterprise in the BASF Group. Many of BASF's products are refined from crude oil and natural gas. BASF owns its own coal, oil, and natural-gas resources. BASF's subsidiary Wintershall AG explores, extracts, and refines crude oil and natural gas around the world, and also supplies raw materials such as natural gas, benzene, cyclohexane, and naphtha to the companies under the BASF Group. Most of BASF's overseas enterprises are in Europe, almost all European countries. In addition, branches or factories are also established in the United States, Japan, Argentina, India, Singapore, Egypt, China, and others.
It is worth noting that the technologies and standards in this field are also continuously developing and improving.
BASF (China) Co., Ltd. Beijing Branch
In addition, many factors must be considered in practical engineering applications.
At the same time, China's textile industry was in a period of vigorous development. BASF seized this great opportunity and in 1885 sent a representative, Mayer, to Shanghai to sell dyes. In this Chinese city known for leading clothing trends, BASF dyes became a best-seller. From then on, BASF formally set foot in the Chinese market.
BASF is a large international chemical company that produces various products in 39 countries and conducts business with customers in more than 170 countries. BASF's global sales in 2012 were about EUR 72.1 billion, with about 111,000 employees by the end of 2012.
In addition, many factors must be considered in practical engineering applications.
Listening to customer opinions, providing services, and meeting their needs is BASF's purpose. To implement this purpose, the company will continue to develop new products and strengthen BASF's leading position in the market. In addition, the company invests more than EUR 2 billion annually in research and development worldwide, providing strong support for BASF's future development direction.
In fact, BASF's future development direction is not only focused on commercial interests, but also on the planet we live on. As social values shift, humans pay more and more attention to safety and environmental protection. These two points are very important to BASF's future success, and its participation in the global 'Responsible Care' program is an important contribution to 'sustainable development.' This program is used in all business areas and subsidiaries of BASF's products and services.
In addition, from the perspective of industrial development, market demand is also driving technological progress.
BASF is the world's leading chemical company, providing customers with a range of high-performance products covering chemicals, plastics, performance products, crop-protection products, as well as crude oil and natural gas. Its distinctive integrated site (the German 'Verbund') is the company's advantage, enabling BASF to achieve low-cost advantages and thus ensure great competitive advantage. BASF conducts business following the principle of sustainable development. In 2012, BASF's sales reached EUR 72.129 billion, with more than 111,000 employees worldwide. BASF's shares are listed on the stock exchanges of Frankfurt (BAS), London (BFA), and Zurich (AN).
At the same time, the relevant supporting processes and equipment are also continuously optimized and upgraded.
Driven by increased sales volume, rising product prices, and favorable exchange rates, sales in the plastics segment grew. Demand from the automotive industry remained strong, especially in North America and Asia. Due to significantly improved earnings of the polyurethane division, EBIT excluding special items grew substantially. Full-year 2012 sales increased to EUR 11.4 billion, up 4% year-on-year. EBIT excluding special items fell 27% year-on-year to EUR 873 million.
In addition, from the perspective of industrial development, market demand is also driving technological progress.
Driven by increased crude-oil production in Libya and increased natural-gas trade sales, the oil and gas segment's Q4 2012 sales grew strongly. The startup of new wells at the Achimgaz joint venture also contributed. EBIT excluding special items grew significantly, of which EUR 120 million in special items related to losses from the Norwegian Yme development project. The tax on non-taxable income from crude-oil production reached EUR 492 million. Net income was EUR 250 million, down 9%. Full-year sales reached EUR 16.7 billion, up 39%; EBIT excluding special items was EUR 4.1 billion, nearly doubling. Net income also increased to EUR 1.2 billion.
In addition, many factors must be considered in practical engineering applications.
The BASF Group has a history of more than 100 years in dye production; its dye and pigment output and export volume both rank first in the world. Petrochemicals, as its key development direction and main business area, occupy a very important position in the world. The BASF Group is Europe's 5th largest ethylene producer and ranks 14th in the world. In April 1993, it built a 600,000 t/y cracking unit, a 250,000 t/y ethylene oxide unit, and a 160,000 t/y acrylate unit in Antwerp, Belgium. In March 1994, the BASF Group purchased two ICI polypropylene units of 150,000 t/y each, becoming Europe's 2nd and the world's 5th largest polypropylene producer.
The BASF Group is also the world's largest acrylic-acid producer, with production capacity of 600,000 t/y in Europe and North America, twice that of the second-place Rohm and Haas. The BASF Group also occupies an important position in the world's polystyrene production, with capacity ranking second in the world.
In addition, this technology has also been widely applied and practiced in related fields.
Relying on the technological advantages and strategic direction of the group, in 1980 it developed animal disinfectants, mineral elements, etc., committing to research, development, production, and sales of animal-health products, contributing to the nutrition and disinfection of livestock and poultry. This includes polyvinylpyrrolidone raw materials, iodic acid, magnesium, sulfur, potassium, etc. It created the first brand of disinfectant (Lectra-60) and the world's largest mineral-production workshop. In 2003, it created global sales of EUR 1.28 billion. Its business covers all of Europe, Asia, South America, and North America. In 2008, it established an animal-health division in China. This created another glory for the company in the animal-health industry.
It is worth noting that the technologies and standards in this field are also continuously developing and improving.
The characteristics of the BASF Group's research work are that, in addition to the strong strength of the central research department at the Ludwigshafen headquarters, it has also established multiple local development departments around the world to conduct research locally. The central research facilities in Ludwigshafen have 4 historic laboratories, with research scopes respectively: chemicals, plastics, pharmaceuticals and plant-protection products, and dyes and auxiliaries and specialty chemicals. In addition, multiple engineering-development departments provide support for the overall research work. Research departments around the world belong to various business departments and subsidiaries, mainly conducting research related to production and marketing. The BASF Group's leading petrochemical process technologies in the world include:
In addition, this technology has also been widely applied and practiced in related fields.
This technology was industrialized in 1977; the capacity of polypropylene plants using this technology in the world has reached 1.7 million t/y, making it the second most widely used polypropylene production technology after Himont's loop process.
At the same time, the relevant supporting processes and equipment are also continuously optimized and upgraded.
The Reppe process for producing 1,4-butanediol from formaldehyde and acetylene was first industrialized by BASF; in 1975 BASF improved it into the modified Reppe process (i.e., the Reppe atmospheric-pressure process). This process uses a suspended-bed flow scheme, separating the catalyst from the product inside the reactor, and is one of the world's main 1,4-butanediol production processes today.
At the same time, the relevant supporting processes and equipment are also continuously optimized and upgraded.
This technology was industrialized in the early 1980s; BASF used it to build a 100,000 t/y formic-acid production plant. This method first reacts carbon monoxide and methanol to form methyl formate, which is then hydrolyzed in the presence of an extraction agent to produce formic acid.
Building on this, industry experts have also carried out extensive research and improvements.
BASF obtained the patent for expandable polystyrene production technology as early as 1952. The group produces expandable polystyrene at 11 bases on four continents, forming an expandable polystyrene series of more than 30 different varieties under the trade name Styropor, with output ranking first in Europe.
Through long-term petrochemical production practice, BASF has gradually formed a series of hydrotreating and hydroprocessing catalyst products characterized by olefin and aromatics hydrogenation, hydrodesulfurization, hydrodenitrogenation, hydrodemetallization, and lubricating-oil and wax hydrorefining, and possesses their preparation technologies. These catalysts can be used for the refining and treatment of various raw materials and are widely used in petrochemicals.
In addition, from the perspective of industrial development, market demand is also driving technological progress.
As early as 1982, BASF established BASF China Limited in Hong Kong, responsible for sales, promotion, and distribution of imported and locally produced products in Hong Kong and mainland China. BASF China Limited upholds BASF's century-old tradition of providing customers with professional knowledge and services that improve quality and efficiency, to increase their market competitiveness.
To strengthen the operation of its China business, BASF established the holding company BASF (China) Co., Ltd. in 1996. This newly established company legally registered in Beijing provides all BASF joint ventures in China with material storage and transport coordination, electronic data processing, procurement, human resources, finance, and sales services.
BASF's China region employs more than 6,000 people and has 23 wholly owned subsidiaries and 10 joint ventures, located in Hong Kong, Beijing, Shanghai, Nanjing, Guangzhou, Jilin, Shenyang, and Hsinchu. To adapt to local market demand, the company has offices in Hong Kong, Beijing, Shanghai, Guangzhou, Nanjing, Qingdao, and Taipei. In 2007, BASF's sales in Greater China were about EUR 4.4 billion. BASF's main business scope in Greater China includes petrochemical products, polymer dispersions, polystyrene, polyurethanes, engineering plastics, coatings, textiles and leather specialty products, intermediates, catalysts, and chemical building materials.
BASF has set ambitious plans for participating in China's economic development. At present, about 2,200 employees are engaged in China business, with 1997 sales exceeding EUR 1.1 billion. The 2000 sales target was EUR 2 billion, of which 30% would be produced in China. BASF continues to develop actively, hoping to become one of the main chemical enterprises in the Chinese market.
In addition, from the perspective of industrial development, market demand is also driving technological progress.
BASF plays an important role in China's chemical market, participating in ten joint ventures, all product series supporting the operation of its two major production bases in Shanghai and Nanjing. New plants built with the latest technology ensure that BASF and its Chinese partners secure a firm position in this rapidly developing Chinese market.
The enterprise brand ranked 286th in the 2006 'World's 500 Top Brands' list compiled by the World Brand Lab. The enterprise ranked 62nd in the 2012 Fortune Global 500 largest companies.
It is worth noting that the technologies and standards in this field are also continuously developing and improving.
BASF Applied Chemicals Co., Ltd. was established in 1994 and has been a wholly owned production enterprise of BASF since 2000. The company produces specialty chemicals such as leather and textile auxiliaries and dispersions. In June 2007, BASF established a new polyurethane specialty-products production base in Pudong: BASF Polyurethanes Specialties (China) Co., Ltd., including a polyurethane blend plant, a technology R&D center, and a thermoplastic polyurethane (TPU) production unit.
In addition, many factors must be considered in practical engineering applications.
BACC was established in 1994, originally a joint venture between BASF and Shanghai Dye Company, and has been a wholly owned production base of BASF since 2000, playing a very important role in BASF's Asia-Pacific production network.
At the same time, the relevant supporting processes and equipment are also continuously optimized and upgraded.
In 2005, BASF acquired the global electronic-chemical business of Merck KGaA. The former Merck Electronic Chemicals (Shanghai) Co., Ltd. was renamed BASF Electronic Materials (Shanghai) Co., Ltd.
In addition, many factors must be considered in practical engineering applications.
BASF and China Petroleum & Chemical Corporation (SINOPEC) established a joint venture in Nanjing, Jiangsu in December 2000: Yangtze BASF Petrochemical Co., Ltd. (BYC), aiming to build and operate an integrated petrochemical base. The total investment of this joint venture reached US$2.9 billion, with BASF holding a 50% stake. The core of this integrated petrochemical base is a steam-cracking unit that supplies raw materials to nine world-class downstream-product units; it was put into commercial operation in mid-2005, with a grand commercial-operation ceremony held in September. It produces 1.7 million tons of quality chemicals and polymers annually to meet domestic market needs. The company has about 1,500 employees.
At the same time, the relevant supporting processes and equipment are also continuously optimized and upgraded.
BASF Taicyan Agrochemical Co., Ltd. (BTCC) is a 55 (BASF): 45 joint venture established after the transaction between BASF and Taiwan Sugar Corporation was completed in December 2002; the production base has an annual capacity of 12,000 tons, is located in Hsinchu, and produces high-quality crop-protection formulation products.
In addition, from the perspective of industrial development, market demand is also driving technological progress.
The BASF Group establishes branch companies in regions or countries that are its main markets or key expansion markets, directly guiding local business development. In 1996, the BASF Group established a health-and-nutrition company headquartered in Denmark and BASF (China) Co., Ltd. headquartered in Beijing.
3. Forming joint ventures or alliances with competitors to create complementary technological advantages and production facilities and enhance competitive advantage. BASF Group and the U.S. Lynx Company formed a joint venture headquartered in Heidelberg for biotechnology and genetic-engineering research. The BASF Group also plans to combine its polyethylene business with Shell to form a joint venture responsible for Basell, a 50%-50% joint venture between BASF and Shell for their European polyethylene businesses and the acquired Montell polyolefins European polyethylene business. The combination with Shell will create the joint venture Basell, which will build a new plant in Moerdijk, Netherlands, to produce propylene oxide and polypropylene. It will combine the unsaturated olefin business in Europe with the Dutch DSM company as a joint venture. The BASF Group also plans to form a joint venture with Hoechst to jointly operate their polypropylene businesses.
In addition, many factors must be considered in practical engineering applications.
The BASF Group has strong financial strength, and its capital expenditure has grown steadily in recent years. Although the BASF Group's investment in fixed assets has not been maintained at around EUR 4 billion as during 1989–1993, it has shown a steady growth trend since 1994, and also plans to invest more than EUR 3.8 billion in 1997. From the departmental distribution of the BASF Group's capital expenditure, the health-and-nutrition field has been increasing, with signs of accelerated development in recent years. The BASF Group's capital expenditure on chemicals, plastics, and fibers, after four years of decline, increased again in 1996. Dyes and coatings, as the BASF Group's traditional core business, have developed steadily, which can also be seen in the group's capital expenditure on this field. The BASF Group's capital expenditure on oil and natural gas fluctuates greatly. The group's capital expenditure on other business areas has grown steadily over the past three years but is significantly less than before 1993. Overall, the BASF Group's capital expenditure is invested around its development strategy; the three traditional advantageous fields of dyes and coatings, chemicals, plastics, and fibers have developed steadily, health and nutrition as an emerging core field of the BASF Group has a good development situation, and oil and natural gas as a raw-material source have also developed steadily over the past three years.
From the geographical distribution of the BASF Group's capital expenditure, Europe is its solid focus, with nearly half of the capital expenditure in Germany. North America is the focus of the BASF Group's expansion. The BASF Group's capital expenditure in Asia-Pacific, Africa, and South America accounts for the smallest proportion, and its investment focus in the Asia-Pacific region is China, followed by South Korea.
