German chemicals giant BASF wants to double the revenue it generates in the Asia-Pacific, with pharmaceuticals being one of the key markets in which it wants to expand.
BASF made the comments while outlining its growth 2020 strategy on Tuesday, explaining that it will invest €2bn in production operations in Asia over the next four years to drive revenue growth.
The firm also plans to make up to 70 per cent of the products it sells in Asia locally, meaning that a significant proportion of the funds invested in the region will be used to expand its manufacturing operations.
Martin Brudermuller, who oversees operations in Asia, said: “BASF has established its position as the leading chemical company owing to its long-standing commitment to the Asia Pacific region.
“The Asian growth markets will continue to provide attractive opportunities, and our Strategy 2020 will help us to realize them.”
The firm, which is already present in 15 countries in the region, will also seek opportunities to support rapidly developing markets in relatively untapped locations, including Vietnam and inland China.
Brudermuller explained that: “Local innovation and local production are driving business growth in this region. We therefore want to develop new applications, products and solutions together with our customers in Asia, adapted for Asian needs, and then serve local markets."
While details of BASF investment plan have not yet been release, investment in its Chinese pharmaceutical manufacturing operations is likely to be high on the agenda given the strength of the market.