May 23 (Bloomberg) -- BASF SE plans to build its first crop-protection chemical plant in Asia as growing food needs in the region boost demand for herbicides.
The new formulation and packaging plant will be built in Rudong, Jiangsu Province in China, the Ludwigshafen, Germany-based company said today in a statement. The site, to cost a “double-digit-million” euro amount, will be ready next year and employ more than 100 people.
BASF, which spends 430 million euros ($554 million) on research and development at its herbicide and fungicide unit, will invest an average of 300 million euros annually on additional production sites, it said today. The chemical maker is counting on Asia to be one of the main growth drivers to help it achieve a goal of 110 billion euros in revenue by the end of the decade.
“We are specifically investing in research, development and production in Asia Pacific as part of BASF’s globalization efforts, which will enhance our collaboration with growers in the region,” Markus Heldt, head of the company’s crop protection unit, said in today’s statement.
BASF is also considering a second R&D hub in the region and will more than double the number of scientist there by 2020, it said. A total of 250 people will be hired.
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