FRANKFURT, March 3 (Xinhua) -- German chemical giant BASF has made the right decision to deepen its commitment to China, as the country becomes increasingly important for research, development and green transformation, the company's chief executive officer (CEO) has said.
"China has become a significant location for research and development," said Markus Kamieth, chairman of the Board of Executive Directors and CEO of German chemical giant BASF, in a recent interview with Xinhua.
Kamieth noted that China's green transformation presents significant opportunities for BASF. The company attaches great importance to the Chinese market in its global business development and will continue to deepen its presence in China by leveraging its long-standing operations in the country.
At its annual press conference held at the company's headquarters in Ludwigshafen, BASF announced that it has successfully started up the major plants at its integrated Verbund site in Zhanjiang, in south China's Guangdong Province.
The Zhanjiang site, with a total planned investment of 8.7 billion euros (10.09 billion U.S. dollars) from 2019 to 2028, was designed as a key platform for long-term profitability and sustainable growth in what BASF describes as the world's fastest-growing chemical market.
Kamieth said the Zhanjiang site enables low-carbon production and has clear advantages in carbon footprint management, and BASF stands ready to contribute to China's green transition with concrete actions.
He said he expects the site to start generating profits next year, and expressed confidence that in the medium to long term, it will become a highly successful production base for BASF.
China currently accounts for about 13 percent of the group's total sales. As the Zhanjiang site ramps up production, this share is expected to increase to between 15 and 20 percent, according to Kamieth.
BASF has operated in China for more than 140 years and has expanded significantly over the past three to four decades. "We want to participate in the growth of the Chinese economy and of our customer industries in China," Kamieth said.
He said that the "in China, for China" strategy has become increasingly important for multinational companies.
Kamieth added that innovation capabilities among Chinese customers, particularly in industries such as automotive, have improved markedly, making it essential for BASF to stay close to its customers.
Besides, BASF's Innovation Campus in Shanghai has developed into the company's research and development hub in the Asia-Pacific region and continues to expand its research capabilities, particularly in areas such as electromobility and renewable energy.
