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BASF makes big operational changes as flavour demand continues to grow

By RJ Whitehead , 12-May-2014
Last updated on 13-May-2014 at 06:10 GMT

BASF’s Nutrition & Health division is carrying out a number of changes aimed to strengthen its competitiveness in Asia-Pacific’s fast-growing flavours and fragrances market.

As a means to further integrate BASF’s regional operation, strengthen its business here and speed up innovation, the changes include adjustments in product and organisational processes, said Narayan Krishnamohan, the company’s divisional vice-president. 

Adaptation of our marketing and sales organisation to better meet the needs of our customers in a speedier manner is a major benefit from the measures taken,” Krishnamohan told FoodNavigator-Asia.

New citral plant

Driven by the growing middle-class purchasing power in most Asian markets, BASF is seeing significant growth potential for its menthol products, as well as rising demand for further fragrances and flavours used in personal care, confectionery and the pharmaceutical industry.  

To meet this growing demand of customers in the flavour and fragrance industry in the region, BASF is building a citral plant with its partner, Petronas. The first sections of the complex are expected on come on stream in 2016. With Petronas Chemicals Group, we plan to produce citral, citronellol and L-menthol within the complex,” added Krishnamohan.

Malaysian prime minister Najib Razak oversaw the groundbreaking of the new plant, in Kuantan, last month.

Our investment in the integrated aroma ingredients complex in Kuantan is a perfect example of how we are implementing our long-term strategy in Asia-Pacific: we are introducing an innovative production technology for the first time here, and we are making another important step towards our objective to achieve local production of 75% of the products we sell in Asia-Pacific,” said Dr Martin Brudermüller, BASF’s board member responsible for Southeast Asia.

Omega 3 boom

At the same time, BASF will focus its production in the attractive and growing market for highly concentrated omega 3 fatty acids. 

The market for omega 3 fatty acids offers significant potential for growth in the area of consumer health globally. We are seeing positive development in this area in Asian markets as well,” said Krishnamohan.

Marketing, sales and administration will be better adjusted to regional market dynamics. A global team responsible for marketing and innovation will in future support the development of customer-orientated products and solutions, as well as faster market launches of new products.

“We aim to strengthen our position in the growing nutrition and health market. Through these measures we will adapt our business to better meet market and customer needs. At the same time, we will improve our profitability,” said Saori Dubourg, President of BASF’s Nutrition & Health division.

Meanwhile, BASF is continuing to analyse further measures to strengthen the competitiveness of its Performance Products segment.

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