【Company】CEO Interview: BASF China President Focuses on Stronger R&D


Release time:

02 Jul,2015

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The picture shows Albert Heuser, President and Chairman of BASF Greater China

 

Albert Heuser, President and Chairman of BASF Greater China, said that Shanghai will play an important role in the R&D structure of this leading global chemical giant due to its focus on "creation and innovation".

By 2020, BASF plans to expand its global workforce to 15,000 researchers. The company will allocate a quarter of its researchers (approximately 3,500 in total) to the Asia-Pacific region (mainly China), another quarter to the United States, and the rest to Europe.

In the Pudong area of Shanghai, BASF employs approximately 500 people in R&D. They are seeking business opportunities and expanding the region's R&D center. BASF's investment of 90 million euros (US$98.4 million) in its second-phase project has proven to be entirely correct and timely.

The laboratories and offices built with this investment will be put into use this year. "In 2016, we will hire a large number of researchers, including many Chinese local employees, and cooperate with Chinese academia to develop more new products," said Heuser, who also serves as President of BASF's Asia Pacific functional departments.

" I firmly believe that we will have a strong R&D capability. We have decided to introduce more R&D projects to China and other countries, projects that have traditionally been based in Europe. ”。

As a veteran employee of BASF for 28 years, Heuser is known for his emphasis on communication with employees. He said that he would provide feedback to employees as soon as possible. "I always guide everyone to reflect on what we can do better. This communication style is one of my main leadership methods, which can encourage employees and create a positive work atmosphere."

Heuser said that for a company like BASF that has succeeded through innovation, talent is key, and talent creates excellence. "We have 112,000 talented employees worldwide, and almost every field in the company has an expert. Sometimes the challenge is finding this expert, so it's important for me to have a good overview of the company's employees and keep them in touch with each other."

BASF has invented a variety of materials, including industrial synthetic ammonia that helped BASF's scientists win the Nobel Prize. This diversified company is now seeking to serve the automotive industry, aiming to reduce carbon emissions, improve food nutrition, and improve food hygiene.

According to Heuser, Environmentally friendly catalysts can purify vehicle exhaust and help reduce smog, and BASF is preparing to invest in the growing demand for these catalysts. BASF will strengthen its production capacity so that its products can be quickly delivered and adapted to local markets.

"Our company also has catalytic materials used in chemical plant filtration systems that can destroy toxic side effects, as well as wastewater treatment catalysts," said Heuser.

BASF, headquartered in Ludwigshafen, Germany, was originally named Badische Anilin- und Soda-Fabrik. As a diversified chemical manufacturer, BASF pursues diversified growth in industrial and consumer chemical products, with a wide range of products from petrochemicals to nutritional and health foods.

BASF entered the Chinese market 20 years after its establishment in Germany. Over the past 130 years, this industrial giant has become a large company with more than 8,000 employees in China. China is BASF's third largest market, after Germany and the United States.

BASF has a long history of ties with China, initially selling textile dyes to China's thriving cotton market. Now, the company is involved in various industries in China and has invested 5 billion euros in China over the past two decades.

Heuser said he believes BASF will find more business opportunities from China's economic restructuring. In addition, BASF has invested in building R&D laboratories and offices in China to boost the company's innovation capabilities.

BASF has made significant investments in Nanjing, Shanghai, and Chongqing, becoming one of the largest foreign investors in China's chemical industry, and it will continue to increase its investment in China.

China has played an important role in BASF's long-term sustainable growth. In 2014, despite the global economic downturn, BASF's product sales revenue in China reached 5.5 billion euros, accounting for 7.4% of the company's global sales. Its plan is to achieve sales of 12 billion euros in China by 2020.

"Under the new normal economic situation in China, I don't see any threats to our company's business. This economic situation will even create more business opportunities, and we will strengthen our R&D work in China," said Heuser.

Heuser said that another priority for BASF is to increase its market share in downstream industries and work closely with Chinese companies. BASF is conducting a joint research project with Haier Group and a US partner to develop a new cooling system that allows refrigerators to cool silently and reduce energy consumption by 30%.

At the same time, BASF is promoting its R&D work in China and increasing the contact between its researchers and consumers. In addition, the company has strengthened research cooperation with well-known Chinese universities, including Tsinghua University, Peking University, and Fudan University.

When talking about the market in western China, Heuser said that BASF's investments in Chongqing and Korla, Xinjiang Uygur Autonomous Region, will play a key role in its operations in western China and will serve as an important channel for its business expansion.

"We look forward to new development opportunities brought by the new Silk Road. Xinjiang and Chongqing have been connected with Europe, which will enable us to explore new markets," said Heuser.

Founded in 1865, BASF celebrated its 150th anniversary this year. During its tour of six major cities around the world, BASF organized a week-long event in Shanghai to celebrate its anniversary and co-create innovation for the future, including an exclusive press conference, competitions, and seminars.

BASF's venue utilized a venue from the 2010 Shanghai World Expo. The company renovated the venue, installed many uniquely designed artworks, and held numerous innovative and interactive activities. The topics discussed ranged from sustainable consumption to future urban transportation and waste management.

Heuser was very amiable during the interview and had a clear outline of the company's development plan. He joined BASF's engineering development department's materials science department in 1987. As a native German, he enjoys a green lifestyle in his home in Germany.

"I have a combined heat and power system at home, which generates heat and produces efficient electricity. I supply my own electricity, and heating is a byproduct of power generation," said Hou Yuzhe.

If he finds some free time from his busy schedule, on a relaxed weekend, Hou Yuzhe likes to walk around Shanghai with his wife. "We are very curious about Shanghai, and if we have extra time, we might play golf and dine at many beautiful restaurants in this city."

"I regularly return to Europe to give reports on China. I tell my German colleagues that China is truly very diverse, not only referring to the Chinese market but also working with Chinese employees within the company."

 

Q&A

Question: What is the best way to break the ice when meeting a Chinese entrepreneur for the first time?

Answer: That's a smart question. The best way is to take your time, be a good listener, be open and sincere, build trust, and of course, have a good meal. It's a combination of listening and engaging.

 

Question: Describe your impression of Chinese business people in three words.

Answer: Entrepreneurial – I believe personal connections among leaders significantly influence relationships within the company, from top to bottom; Trust – leaders need to build trust for good relationships; Equality – Chinese entrepreneurs always want to understand cooperation as an equal win-win, so the third word is equality.

 

Question: What do you consider your greatest achievement?

Answer: I have a happy family. My two children have grown up, and we have spent many wonderful times together. My greatest achievement is having a happy and close family.

 

Question: What is your favorite book (what are you currently reading)?

 

Answer: I am currently reading two books. One is Zhang Weiwei's "The China Wave: The Rise of a Civilizational State." The other is Michael Grabicki's "Breaking New Ground," which is about 130 years of business experience in China.

 

Question: How do you maintain such high energy levels despite your busy schedule?

Answer: I can't spend too much time on hobbies right now. But I get extremely excited about everything related to water, such as swimming, diving, or sailing. I try my best to set aside enough time for activities like walking, swimming, sailing, and playing golf. Of course, all of this needs to be accompanied by good food and wine.

 

Question: Which other Chinese cities would you like to explore in the future?

Answer: I have visited many cities in China, but I haven't been to Kunming yet, so I would like to see the southwest of China.

(Source: China Daily)

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