BASF China chief eyes stronger R&D role

 

Albert Heuser, president and chairman of BASF Greater China. Albert Heuser seems proud of the shift in his company's operations in China: "You can see thatshift from 'made in China' to 'create in China' in a clearly visible way."
The president and chairman of BASF Greater China said that due to focusing on "creation andinnovation", Shanghai will play a major role in the world's leading chemical giant's research anddevelopment network.
By 2020, the company plans to expand to have 15,000 researchers globally. It will put one quarterof its research resources into the Asia-Pacific region, mainly in China, totaling around 3,500people, another quarter in the United States and the rest in Europe.
In Pudong district of Shanghai, BASF has around 500 staff working in research anddevelopment. Seeking business opportunities, it is expanding its regional research anddevelopment center. It invested 90 million euros ($98.4 million) in its second phase project, whichproved to be the right move at the right time.
"The next-level laboratories and offices out of that investment are expected to operate within thisyear. In 2016, we will hire hundreds of researchers including many local Chinese employees, inaddition to working with Chinese academia to develop more new products," said Heuser, who isalso the Functions Asia-Pacific president of BASF.
"I'm very confident that we will have very strong research and development capabilities. We havedecided to bring more research and development projects to China and other Asian countries,and those projects were traditionally based in Europe."
A 28-year veteran of BASF, Heuser is known for his emphasis on communications with staff. Hesaid he gives feedback as soon as possible. "I always trigger a reflection of what we could havedone better, such communication is a key tool of my leadership style, with giving encouragementand creating a positive atmosphere."
In a company that builds its success on innovation, Heuser said people are the key and peoplemake the difference. "We have a lot of knowledge in the heads of our 112,000 employeesglobally, there is an expert for almost everything in the company. Sometimes the challenge is tofind this expert, so it's important to get a good overview and constantly connect people with eachother."
Having invented many materials including industrial scale ammonia synthesis that helped BASFscientists to win a Nobel Prize, the diversified company is now looking to serve the automotiveindustry and contribute to reduce emissions, and improve food nutrients and health.
According to Heuser, BASF is gearing up to capitalize on the growing demand forenvironmentally friendly catalysts to purify automotive exhausts, and to help reduce smog. Thecompany will step up its manufacturing capacity so its products can quickly reach and adapt tothe local market.
"We also have catalyst materials used in the filter systems of chemical plants to destroypoisonous influence, and solutions for waste water treatment," he said.
Headquartered in Ludwigshafen, Germany, BASF originally stood for Badische Anilin- undSoda-Fabrik. As a diversified manufacturer, the company pursues growth in a wide variety ofindustrial and consumer chemical products, ranging from petrochemicals to nutrition and healthproducts.
Since its debut in China 130 years ago, 20 years after the company's establishment in Germany,the industrial giant has grown into a company with more than 8,000 employees in China, its third-largest market after Germany and the United States.
With a long tradition in China, the chemical manufacturer started by selling textile dyes to theflourishing cotton cloth market. Currently, it is engaged in various industries, and has invested 5billion euros in China over the past two decades.
Heuser said he believes that BASF will be able to leverage more business opportunities fromChina's economic restructuring, and BASF has invested to build laboratories and offices inChina for research and development to fuel innovation.
With major investments in Nanjing, Shanghai and Chongqing, BASF has been one of the largestforeign investors in the Chinese chemical industry, and it will continue to step up its investment inthe country.
China has a significant role to play in the company's long-term and sustainable growth. Last year,the company posted sales revenues of 5.5 billion euros in China, accounting for 7.4 percent of itsglobal sales, despite a global economic downturn. It aims to achieve sales of 12 billion euros inChina by 2020.
"I don't see any threat to our business under the 'new normal' in China. It will even foster morebusiness opportunities, and we will strengthen research and development in China," he said.
Heuser said another priority for the company is to increase its market share at the downstream,and work closely with Chinese companies. BASF is working on a joint research project withHaier and a US partner to develop a new cooling system, which allows for noise-free coolingdown of refrigerators, consuming 30 percent less energy.
At the same time, the company is boosting its research and development in China andincreasing contacts between its researchers and consumers. In addition, it is cooperating onresearch with prestigious universities, such as Tsinghua University, Peking University and FudanUniversity.
When it comes to the market in western China, BASF said that its investments in Chongqing andin Korla, Xinjiang Uygur autonomous region, would play a key role in its western Chinaoperations and serve as a vital conduit for its expansion.
"We are looking for future opportunities brought by the new Silk Road. Xinjiang and Chongqingare already connected with Europe, and this will enable us to look into new markets," Heusersaid.
Established in 1865, BASF greeted its 150th anniversary this year. With a tour of six citiesworldwide, BASF organized weeklong events including an exclusive summit, contests andworkshops in Shanghai for celebration and co-creation for future innovation.
The company held many innovative and interactive activities at the former venue of the 2010Shanghai Expo, where unique artworks have been installed. Topics that range from sustainableconsumption to urban transport and waste management of the future were discussed.
Heuser was extremely amiable and clear about the company's plan when he spoke to ChinaDaily. He joined the material science department of the engineering development division ofBASF in 1987. A native German, he enjoys a green lifestyle at his home in Germany.
"I have a co-generator heating system at home, it produces heat and generates electrical powerwith high efficiency. I produce my own electrical power, and the heating is a by-product," Heusersaid.
If he ever has a free weekend from his busy schedule, he likes to spend the time with his wifewalking and sightseeing in Shanghai. "We are very curious about Shanghai, if we have a little bitmore time, then we might play golf and eat at beautiful restaurants in the city."
"I go back to Europe to give reports about China on a regular basis, and I tell my colleagues inGermany that China is really diverse, not only as a market, but also in terms of working withChinese at our company."