Home >Documents >Chemicals Toward new levels of performance - BASF Energy efficiency - Logistics ... balance the...

Chemicals Toward new levels of performance - BASF Energy efficiency - Logistics ... balance the...

Date post:08-May-2018
Category:
View:213 times
Download:0 times
Share this document with a friend
Transcript:
  • Chemicals Toward new levels of performanceStefan Marcinowski

  • 2

    Chemicals the heart of the Verbund

    *including other activities: 2.5 billion Euro (5%)

    2006 Group sales*: 52.6 billion Euro

    Agricultural Products & Nutrition

    Performance Products

    19%Plastics

    24%

    Chemicals Inorganics Catalysts Petrochemicals Intermediates

    Oil & Gas20%

    10%22%

  • 3

    Strong positions across chemical spectrum

    Inorganics PetrochemicalsIntermediatesCatalysts

    Inorganic chemicals

    Inorganic specialties

    Electronic chemicals

    Glues and resins

    Cracker products Industrial gases Alkylene oxides

    and glycols Plasticizers Solvents

    Amines Butanediol

    and derivates Polyalcohols and

    specialties Acids and special

    intermediates

    Emission-control catalysts

    Process catalysts

    Precious metal services

  • 1 | Building a stronger Chemicals segment (2001 today)

    2 | A strong portfolio focused on performance

    3 | Toward new levels of performance

    4

  • 5

    Sales more than doubled, EBIT quadrupled within last 6 years

    CAGR 2001-2006:

    Global chemical production**: 3.6%

    Oil price: 13.6% (Euro/bbl)

    BASF Chemicals

    Sales: 20.8%

    EBIT***: 32.0%

    ** without pharma

    *** before special items

    0

    2000

    4000

    6000

    8000

    10000

    12000

    14000

    2001 2002 2003 2004 2005 2006*0200400600800100012001400160018002000

    Sales* in million Euro

    EBIT before special items* in million Euro

    InorganicsPetrochemicals IntermediatesCatalysts

    Sales: +2

    1% p.a.

    * Engelhard-Catalysts accounted from June 2006 onwards

  • 6

    Relentless focus on operational excellence drives profitability

    Index

    Drivers for improvement:

    High capacity utilization

    Higher margins

    Rationalization in older plants

    Investments into state- of-the-art technologies

    Business models and enterprise-resource- planning models

    EBIT before special items indexed

    Sales indexed

    0

    50

    100

    150

    200

    250

    300

    350

    400

    450

    2001 2002 2003 2004 2005 20060

    50

    100

    150

    200

    250

    300

    350

    400

    450

    Fixed costs indexed (including depreciation and amortization)

  • 7

    BASF Chemicals

    Powerful partnerships

    Total Sinopec Petronas Shell

    Major investments

    Major capex Verbund sites

    (Nanjing, Port Arthur, Kuantan)

    PolyTHF (Caojing)

    Acquisitions Catalysts Electronic chemicals Plasticizers Inorganic specialties

    Major divestitures / closures

    Ethane cracker North America

    Butanediol restructuring

    Plasticizer restructuring

    Todays portfolio better than ever

  • 1 | Building a stronger Chemicals segment (2001 today)

    2 | A strong portfolio focused on performance

    3 | Toward new levels of performance

    8

  • 9

    7%

    20%

    73%

    Estimate 2007 (in % of sales)*

    Growing share of formulated materials and customized solutions

    *excluding Materials Services

    20%

    73% Chemicals & basic materials

    Formulated materials

    Customized solutions

  • 10

    Chemicals & basic materials

    How we succeed:

    Cost leadership through Verbund - Product portfolio - Energy efficiency - Logistics

    Technology leadership Innovation Partnership /

    cooperation

    Chemicals & basic materials

    7%

    20%

    73%

    Estimate 2007 (in % of sales)*

    *excluding Materials Services

    7%

    20%

    73%

    Chemicals & basic materials

    Formulated materials

    Customized solutions

  • 11

    Strong forward integration in a large portfolio of value added products (I)

    Naphtha,LPG

    EO Ethylene glycol

    Ethanolamines

    Styrene Polystyrene

    Oxo-C4

    Butadiene

    Isobutene

    PolyamideCaprolactam

    Dispersions

    Plasticizers

    SolventsButanols

    2-Ethylhexanol

    Superabsorbents

    Engine coolants

    Process chemicals

    Fuel additives, sealantsPolyisobutene

    Cyclohexane

    Polyurethanes

    Benzene

    Acrylic Acid

    PO

    Ethylbenzene

    Raw materials Selected products

    Ethylene

    C4

    Propylene

    Chemicals segment

    Surfactants Detergents

  • 12

    Food conservations

    Pharma, Agro

    Textile fibers, polyurethanes

    Coating resins, adhesive raw materials

    Glues,

    Glass industry, fertilizers

    Chemicals, electronics, fertilizers

    PVC

    Alcoholates

    Natural Gas

    Sulfur

    Salt

    Acetylene

    Ammonia

    THF/pTHF

    Urea

    Vinyl ether

    Methanol Formaldehyde

    Me-Formiate Formic acid

    Melamine

    NOx

    SO2 , SO3

    Nitrite, Nitrate

    Sulfuric acid

    Cl2 , NaOH EDC

    Butanediol

    Syngas

    impregnating resins

    Strong forward integration in a large portfolio of value added products (II)

    Chemicals segment

    Raw materials Selected products

  • 13

    Diverse product portfolio with a strong propylene value chain

    Naphtha cracker matches BASFs broad demand for cracker products better

    BASF operates metathesis plants to convert ethylene to propylene (Port Arthur)

    BASF is a net buyer of benzene and propylene

    Ethylene surplus is mostly covered through long-term contracts with strategic partners (e.g. Solvin)

    to/to Ethylene Typical cracker output

    BASF demand

    Feedstock Ethane (1.3)

    Naphtha (3.0)

    2006

    Ethylene 1.0 1.0 1.0

    Propylene 0.02 0.55 1.09

    Butadiene 0.03 0.17 0.16

    Benzene 0.01 0.25 1.62

    Toluene 0.0 0.04 0.17

    Source: Ullmann, BASF

  • 14

    Global ethylene market segments

    Source: CMAI, BASF

    Ethylene surplus sold to 3rd parties account for 2% of total Chemicals sales

    84% of produced ethylene consumed captive in value added products

    BASF participates over proportional in EO derivatives Styrene

    BASF will manage and balance the limited direct impact of Middle East ethylene derivatives imports inside the Verbund

    59%

    12%

    7%

    10 %

    12%

    Global ethylene market 2006:110 million tons

    BASF net ethylene balance

    BASF production* 2006:2.3 million tons

    16%

    8%

    2%

    25%13%

    29%

    7%

    * BASF JV as per ownership share, 2006

    EOPVCPolyethylene

    Others Ethylene surplus sold to merchant market

    Styrene

    EO for MEG merchant market (68 % in China)

  • 15 Source: BASF

    Propylene captive demand in different spread of applications

    65%

    7%

    4%

    9 %

    8%

    Global propylene market 2006:66 million tons

    BASF production* 2006:1.4 million tons

    7 %

    * BASF JV as per ownership share, 2006, from steamcracker and metathesis

    Global propylene market segments

    AcrylonitrilePOPolypropylene Acrylic acid

    OthersOxo

    BASF participates over proportional in Propylene oxide Acrylic acid Oxo products

    Can manage and balance the limited direct impact of Middle East propylene derivatives imports inside the Verbund

    24%

    12%

    29%

    35%

    BASF net propylene balance

  • 16

    Unique energy efficient Verbund concept

    (average tons/hour)

    -1000 -500 0 500 1000

    Heat producing processes

    Heat consuming processes

    Own energy power station

    Steam consumption Steam production

    16

    Example Antwerp

  • 17

    0

    25

    50

    75

    100

    Total manufacturingcosts

    Net energy usage

    Cost leadership through consequent process innovation

    New feature: Increased selectivity by optimized feed gas

    Record in specific EO yield and energy efficiency

    Significant ethylene savings

    Technology leadership through continuous improvement

    Results of benchmarking study in %

    BASF Antwerp

    Best quartile world

    Average world

    Example EO technology

  • 18

    Ethylene

    Butadiene

    Propylene

    Benzene

    Toluene

    BenzeneExpanding the feedstock basisto take advantage of market fluctuations e.g. benzene from steam-dealkylation

    Propylene EthyleneTargeted closure of the captive supply/demand gape.g. Propane DeHydrogenation (PDH)

    ButadieneCapturing market opportunities via dedicated productione.g. butadiene from butaneBASF own production

    Global position

    lowlow high

    high

    BA

    SF c

    aptiv

    ede

    man

    dExpanding our technology leadership through process research

    Over 80 R&D projects for new & improved processes

  • 19

    Capturing new markets through product research

    BASF uses proprietary reaction know-how for production

    Rapid introduction of new plasticizer to cope with changed regulations: from 0 to 30 kto in five years

    Sales potential: 80 million Euro in 2010

    Market share to grow from 11% (2006) to 30% (2010) (plasticizers in sensitive applications)

    Hexamoll DINCH is a new plasticizer for sensitive applications: medical devices, toys, food contact uses

  • 20

    Leverage partnerships A new butadiene value-chain with CDon

    New highly efficient process, using butadiene and laughing gas from the Verbund

    Oxidation with laughing gas in worldwide first large- scale production

    Long-term contract signed with EMS-Chemie

    New plant under co

Click here to load reader

Embed Size (px)
Recommended