Welcome

^{Letter from the President}

At BASF, we harness our strengths to perform well in Greater China, even under pressure. The year 2023 is marked by a sluggishly recovering world economy, a slowdown in trade and investment, and rising geopolitical tensions. Despite these challenges, the BASF Greater China team showed remarkable resilience and dedication, maintaining safety performance, timely deliveries, and business continuity at all times.

For the full year 2023, we posted sales of approximately €9.4 billion to our customers in Greater China. Our actions and goals point to the same direction: We are taking a firm stance to reinforce our position in Greater China, the largest chemical market in the world. We are also looking beyond the present by expanding our local production footprint, strengthening R&D capabilities, and spearheading sustainability efforts in China.

Continuously invest in the Chinese market

Our strategy is to produce where our customers are and where market growth is, so we keep fortifying our market position in Greater China with our continuous investments. One example is the construction of our new Verbund site in Zhanjiang, which will be BASF's largest single investment with a total of around €10 billion. Following the startup of the engineering plastics plant in 2022, we announced the inauguration of the thermoplastic polyurethanes (TPU) plant in January 2024. This TPU plant is BASF's largest single TPU production line globally, catering to the soaring demand in Industrial, eMobility and new energy markets.

We want to stay close to our customers and develop our value chain accordingly. One way to achieve this is to forge strong joint ventures with local business allies. Together with our partner Sinopec, we inaugurated the expanded downstream chemical plants at the Nanjing Verbund site in November 2023. The expansion will increase the production of high-quality chemical intermediates. We also modified or expanded several production sites nationwide, especially in the Surface Technologies, Nutrition & Care, and Materials segments, to better serve the evolving needs of our customers in China.

Drive innovations for a sustainable future

For BASF, innovation is our key differentiator; we lead by advancing our local R&D capabilities. In June 2023, we inaugurated the expansion of the Innovation Campus Shanghai. From this nexus of collaborations with BASF’s customers and partners in China and across Asia Pacific, we can expect more inspiring co-creations to come.

With leading customers in China, we keep innovating products and solutions that contribute to sustainable development and circular economy. In the long term, we aim to boost sales and earnings with new and improved products – especially with products that make a positive environmental impact along the value chain.

Transform towards climate neutrality

BASF has set itself the goals to achieve net zero carbon emissions by 2050. In China, we are making steady progress towards this goal.

We are shifting our energy supply from fossil fuels to more and more renewable energy sources through a “make and buy” approach. We have also partnered with Mingyang to operate an offshore wind farm in South China, which will power renewable electricity to the Zhanjiang Verbund site as planned.

We make every endeavor to enlarge our portfolio of low-carbon products. In 2023, several plants in China obtained ISCC PLUS certifications, demonstrating BASF's commitment to sustainable development.

We strive to be a responsible corporate citizen. We joined hands with NGOs and business partners to promote sustainability topics. Our staff volunteered for the annual Clean-up activities and our Kids' Lab program continued to spark wonder among kids nationwide. We also hosted events with the Zhanjiang Mangroves and Wetlands Conservation Foundation to raise ecological awareness among the public.

Progress through teamwork

Our employees are key to BASF’s success in China. We support our team members to develop their professional and personal skills, helping them thrive in every phase of their career journey. I am particularly pleased to share that BASF has been recognized as the Top Employer in Greater China for the 14^th consecutive year. I want to express my gratitude to all our employees in Greater China for their contribution to our company’s success.

I have faith that we will overcome the current challenges and continue to grasp growth opportunities in China. We have a solid plan in place and more importantly, we have a team who possesses resilience and wisdom to bring the plan to fruition. Together with our stakeholders,  I look forward to making meaningful impact for a sustainable future in Greater China!