BASF continues growth, development

Paraphrasing the company’s slogan, BASF doesn’t make a lot of the products golf courses buy, they make a lot of products golf courses buy better.

Hans W. Reiners spoke of BASF's plan to cultivate innovation and create value.

Hans W. Reiners, president of the agricultural products division at BASF, welcomed members of the media to the company’s facility in Research Triangle Park, N.C., April 11 for a presentation and tour of the facility.

Reiners focused on the company’s motto of cultivating innovation and creating value throughout his presentation.

“We all do our best to bring our motto to life with energy and enthusiasm,” he says about a company that recently celebrated its 140th anniversary. “When it comes to technology leadership, BASF Group has a long and proven track record. With 1,000 patent applications per year, BASF Group is creating innovations literally on a daily basis.”

With 15 percent of BASF sales directed to customers in the agricultural business, Reiners says this division plays an important part within the group strategy.

“We in BASF’s agricultural products division strive to offer product and services that meet our customers’ needs,” he says. “We focus primarily on fungicides and insecticides with some selective herbicide targets, where we expect further market growth and high demand for innovations.”

Customer focus
Regarding the business direction of BASF, group vice president of North America, Bill Wisdom says the company will continue to focus on core competencies, deliver competitive products, set reasonable expectations, align business structure and manage costs. This adds to the success of BASF while helping its customers be more successful, according to Wisdom.

Hans W. Reiners, left, and Bill Wisdom fielded questions from the media following their presentations.

Wisdom also discussed BASF’s business base ratio. An optimal technology model would have a 50/50 split between new and established technology. Any variation should lean heavier in favor of more new technology over an established base. In 2002, according to Wisdom, BASF was at a 31/69 percent (new) split, but has worked toward a 49/51 split in 2005.

Speaking directly about the golf market, Wisdom says he recognizes the leveling off of the industry following the boom of the late ‘90s, but isn’t planning on turning away from golf.

“There’s still a lot of value in golf course management,” he says. “It’s something we will continue focusing on.”

Research and development
Investing in the research and development of new and existing products is a key component of BASF’s plan, according to Reiners.

Taking the leadership role in innovation and keeping it in the future, takes more than our obvious dedication and passion,” he says. “It demands investment as well.”

BASF spent $339 million in this area in 2004, an increase of $42 million compared with the previous year.

“Without a doubt, from a global view, there are greater growth opportunities in fungicides and insecticides,” Reiners says. “In the insecticide market, modern, higher quality chemical products are increasingly going to replace traditional ingredients.”

Reiners says he sees the insecticide and fungicide markets growing by 2 and 3 percent each year and expects to grow above the market.

BASF employs about 1,000 scientific personnel between its two research facilities – one in Research Triangle Park and the other in Limburgerhof, Germany.

BASF’s products include chemicals, polymers, automotive and industrial coatings, colorants and agricultural products. These products can be found in cars and buildings, electronics and textiles, paper and cosmetics. A company growth of $578 million in 2004 over 2003 was a 16-percent increase, pushing BASF’s total earnings to $4.170 billion.