BASF Future Business GmbH to develop new business areas

BASF has established a new company-BASF Future Business GmbH-with the goal of more quickly developing specific new business areas. The company will focus on high-growth markets and future challenges which can be met through solutions based on innovative chemistry. In doing so, BASF Future Business GmbH will work with partners both inside and outside the BASF Group. The company will have a EUR100 million seed capital fund with which to finance new ventures, for example, in the field of materials science. The purpose of the fund is to gain access to new technologies and to achieve above-average returns with a clear risk management strategy.

Finding solutions today to tomorrow's problems
"The establishment of BASF Future Business GmbH is another dimension of our business strategy of generating value through growth and innovation," said Dr. Stefan Marcinowski, BASF's Research Executive Director. "We want to use the new company to work to find solutions today that will open up new business areas for us tomorrow and give us access to new customers. BASF Future Business GmbH will be active in areas in which we see potential for our chemical expertise, but which are currently outside of BASF's traditional markets," continued Dr. Marcinowski. Examples include providing drinking water, communication and information technology as well as the broad field of nanotechnology. "Wherever possible we want to maximize added value by offering complete solutions as a system supplier," Dr. Marcinowski added. BASF Future Business GmbH will also develop production and marketing strategies. "The company will be responsible for the entire marketing process, not just for developing the technological basis."

The managing director of BASF Future Business GmbH is Dr. Karl-Rudolf Kurtz, formerly head of special polymers research at BASF. In the medium term, the company, which is based in Ludwigshafen, is expected to employ about ten people, who will concentrate on identifying and managing promising projects.

Bringing research success more quickly to market
Parallel to the formation of BASF Future Business GmbH, new units within BASF's current operating divisions will be established as part of the further development of BASF's organization. The units will be responsible for expanding existing activities and finding applications for new research.

"These units will be in a better position to exploit new developments, something that our existing business units, which are mainly responsible for large-volume products, often find difficult," explained Dr. Marcinowski. The new units will be active in product areas such as performance chemicals, dispersions, fine chemicals, intermediates and plastics.

Three examples from recent years demonstrate how well BASF has turned its investments in research into market success.

In the area of chemicals, new specialty intermediates that meet particular customer requirements have been developed. Much of the current work is concentrated on bio-catalytic processes for producing optically active chemicals. The substances, which are marketed under the ChiPros™ tradename, are of growing importance in pharmaceutical and agricultural products. Thanks to an efficient and widely applicable technology, BASF has quickly become a leading supplier of these products.

Another team develops and markets a biodegradable plastic called Ecoflex®. Sales of this innovative product have increased ten-fold in the two years following its launch in 1998. Ecoflex is currently the market leader among synthetic biodegradable plastics.

A third team works in the field of powder injection molding. Since its introduction ten years ago, sales of BASF's Catamold® range of molding compounds has experienced double-digit growth and now holds a leading 70 percent share of the European powder injection market. BASF is also expanding its market shares in the United States and Asia.

BASF is a transnational chemical company that aims to increase and sustain its corporate value through growth and innovation. The company's product range includes high-value chemicals, plastics, colorants and pigments, dispersions, automotive and industrial coatings, agricultural products and fine chemicals as well as crude oil and natural gas. BASF's approach to integration, known in German as "Verbund," is one of its particular strengths, ensuring cost leadership and a unique competitive advantage. With sales in 2000 of about EUR36 billion (circa $34 billion) and a workforce of 103,000 employees, BASF is one of the world's leading chemical companies. BASF acts in accordance with the principles of Sustainable Development. BASF shares are traded on the stock exchanges in Frankfurt (BAS), London (BFA) and New York (BF). The company's Internet address is www.basf.com.

Source: BASF

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