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BASF as a partner for the customers |

BASF Plastics: The present, the future and the customer

BASF as a partner for the customers Presented by Raimar Jahn, President of the Operating Division Performance Polymers Trade Press Conference K 2004, June 23, 2004, Ludwigshafen, Germany

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Plastics are found in all areas of our daily lives – in cars, toys, cosmetics packaging, household appliances etc. The demand for plastics continues to grow and grow, particularly in sectors like the automotive industry. Whereas in 1975 the VW Golf had 45 kilos of plastic on board, that figure today is already 140 kilos (figure 11).

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Wide product portfolio
 BASF is one of the world's largest producers of engineering plastics and nylon fibre products. The product portfolio comprises Ultrason® (PES, PSU), Ultramid® (PA), Ultradur® (PBT) and Ultraform® (POM) and enables BASF to cover an astonishingly wide range of customer requirements, be it heat resistance, stiffness, elasticity or dimensional stability. A large part of the engineering plastics produced and marketed by BASF's Performance Polymers division is used for injection moulding parts in the automotive and electrical sectors or by the packaging industry for extruded sheet and film. A smaller share of polymers is spun into carpet and textile yarn.
Demand in the injection moulding and extrusion markets continues to increase. Average annual growth rates in the period 1990 to 2000 were 7 and 6% respectively; annual growth until the year 2010 is put at 6 and 5%. BASF's strategy is therefore to strengthen its injection moulding and extrusion grades in order to achieve or defend a leading position worldwide in these sectors of the market. Growth will continue in all regions, but will be particularly strong in Asia. Until 2010 the consumption for nylon in America presumably rises around approximately 350 thousand tons, in Europe by 500 thousand tons and in Asia by 550 thousand tons (figure 4). This growth parallels the increase in car ownership in all regions – especially in China (figure 5), where global car makers like VW, General Motors, PSA, BMW, DaimlerChrysler or Toyota are planning to expand capacity (figure 6).

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Globality for the customer – one service of many
 As markets have globalized, so has BASF's Performance Polymers division, which today operates plants across the world, close to its customers – for example in Freeport, Pasir Gudang (Malaysia) or Ludwigshafen. Technical development is supported from various locations such as Yokkaichi, Detroit and Ludwigshafen. Overseas joint ventures and acquisitions underline the globalization process and are an important source of additional growth. Recently BASF formed a 50:50 joint venture with Toray Industries Inc., Tokyo (Japan) to produce PBT (polybutylene terephthalate) resin for the growing Asian market. A significant boost has come from the acquisition of Honeywell's engineering plastics business, along with their customers, employees and production plant. In doing so, none of the approximately five hundred former Honeywell customers was lost. Moreover, sales have already been increased – something that is not least due to the expertise and commitment of the some 400 ex-Honeywell employees at six sites in America, Europe and Asia.
Generally, the business and sales units of big international companies are organized on a regional basis. More and more customers however want to transact their business at a central location. That is one reason why BASF's Performance Polymers division is building sales structures to serve its big global customers. Key account managers ensure, for example, that an engineer from Toyota in Europe gets the same information as his colleague in the US.
For the polymers division, being global also means offering comparable levels of service and product quality in every region – something BASF can guarantee through its worldwide production operations. The fact that volume sales growth from key accounts is higher than from regional accounts is evidence that the global approach to sales is paying off and gaining acceptance among customers.
Three years ago a steering committee was formed to coordinate BASF's extensive marketing activities within the automotive industry. It comprises people from any BASF division that has anything to do with the automotive sector – Performance Polymers, Coatings, Styrenics, Polyurethanes, Performance Chemicals as well as research and development. The Global Automotive Steering Committee ensures that BASF can direct its vast range of products and know-how effectively and efficiently in order to fulfil the car makers' differing requirements.

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Success factor: innovation
 When it comes to new plastics applications, the Performance Polymers division works closely with many customers early in the development process. Continuous contact with the customer is an essential part of such a relationship. BASF's plastics engineers and technologists regularly attend technology conferences held by the big car makers – such as Volkswagen in Wolfsburg or Opel in Rüsselsheim – to present their ideas and activities.
What must be one of the greatest successes of nylon in the engine compartment is the plastic intake manifold (figure 7). A new milestone in the long history of cooperation between MANN+HUMMEL, the big international automotive supplier, and BASF is the fully variable plastic intake manifold for gasoline direct injection engines. The part, which is moulded from Ultramid, is already being fitted to the new Audi A4 2.0 FSI 4V.
Another innovation is a truck oil-sump developed by KTSN in eastern Germany. It is the first truck oil sump in the world to be made from a thermoplastic, and in 2003 it won an innovation award from the Society of Plastics Engineers (SPE). Thanks to their Ultramid resin and their experience in plastics engineering and design, BASF's experts made a decisive contribution to this success. The part is found in DaimlerChrysler's Actros series of trucks.
Until now, car seat-pans consisted of fabricated metal covered with polyurethane foam, and were costly to make. BASF in the US has now come up with an intelligent plastic design. It has exactly the same function as the metal version, but is now made in a single production step and weighs only half as much.
A striking example of successful cooperation with Asian customers is engine and chassis mounts moulded from Ultramid (figure 9). These are used by various Japanese car makers, including Subaru, Nissan and Mitsubishi. While engine mounts isolate the vehicle's body from tilting moments, chassis mounts take up loads from the suspension. The advantage for the car maker is – apart from lower costs – weight savings of up to 40% compared with conventional metal mounts.
The above examples clearly demonstrate how successful cooperation can be, irrespective of geography. To be able to collaborate with customers in the generation and development of ideas for new applications, especially automotive ones, BASF joined INPRO, a research and development company that identifies and evaluates potential for innovation in automotive production technology. INPRO for example came up with a list of top ten automotive "megatrends", around which development should orientate in the coming years; these are mobility, digitalization, production flexibility, customer flexibility, information, new materials, safety, comfort, sustainability/regulation, and electrical and electronic systems (figure 20). Other INPRO members are DaimlerChrysler, IWKA, Thyssen Krupp Automotive, Volkswagen and the state Berlin.

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Acknowledged by the customer
 In recognition of its effort and commitment, the Performance Polymers division recently received Black & Decker's Supplier of Excellence Gold Award, Bosch's Supplier of the Year Award, and was accepted into Valeo's VIP (Valeo Integrated Partnership) programme.

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