China growth opportunities

Entry strategies for the individual geographies, however, need to be differentiated, since logistics, distribution, and market development largely depend on local conditions. In China, for example, the on-site business model is the key to seizing growth opportunities, as the cylinder business will be difficult to develop profitably due to the absence of a rental fee model and the dominance of local... 

Morgan Stanley. China - Significant Growth Opportunities Remain... 

Amino resin has benefited from the fast-growing paints and coatings industry, which will continue to offer the best growth opportunity. Monsanto and Shanghai Coatings Co have set up a joint venture in Shanghai to manufacture amino resins in China. 

Packaging, construction and automotive markets offer the best growth opportunities for plastics development. The increasing demand for plastic packaging is a result of the rapid development of industrial goods, chemical products, consumer products, food, appliance and other industries in China. The packaging industry had consumed 5.3 million tonnes of plastics in 1998 and advanced by 12.8% annually to 9.6 million tonnes by 2003. 

Management must develop a clear and consistent corporate perspective for China. This should start with a dear vision on strategic priorities based on the opportunities and threats, and should include growth and sales share targets. The vision then translates into an investment strategy - specifically deciding on whether to build or whether to acquire. 

Overall, BASF believes that the risk of missing out on opportunities is far larger than market risks. We are convinced that Greater China will continue to be an important growth engine for BASF in Asia Pacific. It represents a key success factor in ensuring that BASF remains the world s leading chemical company, that BASF remains - The Chemical Company. 

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