K2007TradePressConference.doc

K 2007 Trade Press Conference July 3 and 4 in Frankenthal, Germany BASF plastics Business models, strategy and growth opportunities Presentation by Dr. John Feldmann, Member of the Board of Executive Directors, BASF AG, responsible for Plastics, Oil and Gas, BASF Aktiengesellschaft, Ludwigshafen, Germany Plastics – materials for energy efficiency In daily life plastics have become commonplace for us today. That has come about because of the broad range of properties of plastics and accordingly we see for the future attractive opportunities for growth in many diverse applications and markets. Plastics are materials for energy efficiency and for that reason alone will continue to enjoy high demand. In the automotive sector plastics with a 14% share by weight today have a secure position which in the long term we will develop further. In their applications plastics help to save weight and in this way contribute to reducing both fuel consumption and emissions. In packaging and containers plastics also make a contribution to lower weight and reduced transport costs. Insulating materials based on plastics help to make residential properties distinctly more energy efficient. You must know the example of the 3-litre house, our model housing development in Ludwigshafen in which we saved up to 90% of the heating energy and hence correspondingly lowered emissions. During their production and processing plastics require significantly less in the way of raw materials than can be saved by their application. Thus Styropor insulating foams already save more energy in the first heating period than was needed to produce them. The plastics market Global demand for plastics since 1990 has grown on average by 5.5% per annum and this trend will continue with an expected annual growth rate of about 5% up to 2015. In this period plastics will grow steadily in all regions. We expect the highest growth rates in Asia. Since this year consumption in Asia is higher than the cumulated