LUDWIGSHAFEN/BEIJING/DELHI — BASF, the world’s largest chemical producer, is accelerating its pivot toward Asia’s booming economies. At the company’s recent Annual General Meeting, CEO Markus Kamieth underscored plans to intensify growth efforts not only in China but more aggressively in India and key Southeast Asian markets including Indonesia, Malaysia, Singapore, Thailand, and Vietnam.
Asia to Drive Future Chemical Growth
“These seven countries — China, India, and the ASEAN-5 — will account for around 80 percent of global chemical industry growth by 2035,” Kamieth told shareholders, citing updated industry forecasts. “We want to outpace market growth in India and the ASEAN countries and continue expanding in China in line with the market.”
The chemical giant’s strategy is clear: targeted investments, local partnerships, and potential mergers and acquisitions will form the backbone of its push in these fast-growing markets. This includes strengthening its footprint in sustainable chemistry and specialty chemicals, which are in high demand across Asia’s expanding middle class and industrial sectors.
China’s Zhanjiang Megaproject Nears Completion
BASF’s commitment to China remains undiminished. The company announced that its €10 billion Verbund site in Zhanjiang, Guangdong province, is nearing completion, with production scheduled to commence in 2026. The construction phase is now in its final stretch, and turbine start-up activities — incurring initial costs of around €400 million — are set to begin in the second half of 2025.
This Zhanjiang facility is BASF’s largest investment outside Germany and is designed to serve both domestic and export markets in Asia-Pacific. The site will integrate advanced manufacturing and sustainability technologies, including renewable energy solutions and water recycling, in response to tightening environmental regulations in China.
India and ASEAN: The New Frontiers
BASF sees significant untapped potential in India and Southeast Asia. In India, where economic growth remains robust at over 6% annually, BASF is evaluating new production partnerships, particularly in specialty materials and agricultural solutions. Recent reports from Indian business media suggest that BASF is also in early-stage talks with local players for joint ventures in battery materials as electric mobility gains momentum.
Meanwhile, across ASEAN, BASF is eyeing markets where rising consumer demand and industrialization are driving chemical consumption. Vietnam and Indonesia are seen as priority countries for new investments, while Malaysia and Singapore offer established hubs for regional distribution and specialty production.
Global Push Amid Industry Pressures
The company’s Asia expansion comes as European chemical producers face mounting cost pressures at home due to high energy prices and regulatory challenges. By deepening its exposure to Asia — now the world’s largest chemicals market — BASF aims to secure future growth while balancing risks through geographic diversification.
Market analysts say BASF’s strategy reflects a broader industry trend. “Global chemical demand is shifting decisively towards Asia, and companies that align with this shift are better positioned for long-term competitiveness,” commented Dr. Anika Schubert, an industry analyst at Handelsblatt Research Institute.
As BASF rolls out its new Asia-focused roadmap, it is also pledging to maintain its innovation base in Germany and Europe. “Asia is our growth engine, but our roots and our R&D power remain firmly anchored in Europe,” Kamieth affirmed. (zai)