Photo by BASF
Speaking at an AmCham luncheon on Oct 24, Sanjeev Gandhi, Board Executive Director and Head of Asia-Pacific at BASF - one of the world’s largest chemicals producers - said the company plans to invest €3.1 billion in the Asia-Pacific in the run up to 2021 as it seeks to better meet customer demand for shorter product development cycles and aggressive cost reduction targets.
Headquartered in the German city of Ludwigshafen, the company expects to spend half its investment budget in China, which contributes half of its Asia-Pacific region sales.
Part of the investment spending will go towards boosting production capacity so that a greater share of products sold in the Asia-Pacific region are made locally. The plan is to raise the local target from 60 to 70 percent.
He noted some multinational consumer goods producers have encountered “huge problems” in Asia as they failed to “localize” their products to meet customer needs, losing market share to aggressive regional and local competition.
“It is extremely important that we allow our experts and management in Asia to adapt on a day-to-day basis and provide the customization wanted, which is typically the best solution at the cheapest price.”
Read more at SCMP