LUDWIGSHAFEN (dpa-AFX) - BASF (BFA.L, BASFY.PK) expects gross domestic product and chemical production in Asia Pacific to continue to outgrow other regions, despite the recent slowdown. BASF now estimates the compound annual growth rate (CAGR) for real chemical production through 2020 for Asia Pacific at around 5.6%, still well above the world average of 3.7%.
Sanjeev Gandhi, member of the Board of Executive Directors of BASF SE and responsible for Asia Pacific, stated: 'China did not grow as fast as we had assumed. We saw low growth in mature Asian markets. India and South East Asia are picking up slightly. Overcapacities in some commodity product lines have contributed to a changing business environment.'
BASF said it will selectively expand local production network in the region in the coming years. Planned investments of around 3.5 billion euros between 2016 and 2020 will focus on areas where BASF is technologically leading. BASF's target to produce around 75% of the products it sells in Asia Pacific in the region by 2020 remains valid.
Copyright RTT News/dpa-AFX