BASF SE spent a record $2 billion on research and development in 2010 and will top that this year, putting the chemical giant on track to generate more than $10 billion from innovation efforts by 2015, the company says.
BASF also will be selling off its Surface Technologies business to New Jersey-based Curtiss-Wright Corp. The ST business is a leading supplier of metallic and ceramic thermal spray coatings, primarily for the aerospace and power generation markets.
BASF spent nearly €1.5 billion (about $2 billion US) on research and development in 2010, compared to €1.40 billion (about $1.9 billion US) in 2009.
“Research and development are the foundations to secure our future,” Dr. Andreas Kreimeyer, BASF Research Executive Director, said at a recent press conference. “BASF will therefore also be increasing its R&D spending in the new year 2011, the International Year of Chemistry.”
More than 9,600 R&D employees are working in international and interdisciplinary teams on about 3,000 projects across the company’s businesses.
In 2010, BASF said, it surpassed its goal of generating €6 billion in sales with new and improved products and applications that have been on the market for less than five years. Much of that success stemmed from a new herbicide and new catalysts used to break down nitrogen oxides in diesel-fueled vehicles.
“We are therefore looking optimistically into the future,” said Kreimeyer. “By 2015, BASF wants to be generating between €6 and €8 billion in sales [$8.1 billion to $10.8 billion US] through innovation.”
BASF is the world’s leading chemical company, with performance chemicals and coatings products that touch every global coatings sector. In the wind industry, BASF manufactures epoxy resin systems for components, specialized coatings materials for rotor blades, and polyurethane foams, materials for formulating PVC foams and polyurethane-based adhesives for the production of high-performance blades.
Its Construction Systems business includes concrete repair and protection materials, joint sealants, Exterior Insulation and Finish Systems (EIFS), grouting and anchoring systems, and waterproofing membranes.
The Admixture Systems business reaches the ready-mix, precast, underground construction, cement producing and manufactured concrete products markets. Its Cementium line of cement additives are used throughout the cement industry, and its products are used in automotive coatings.
“Through our research, we want to develop products and technologies that will secure individual flexibility and mobility while protecting the environment and climate,” says Kreimeyer. A key focus will be electromobility, he adds.
Surface Technologies Acquisition
Curtiss-Wright Corp.’s Metal Treatment segment will acquire BASF's Surface Technologies business, the companies announced last week. Terms were not disclosed.
"The acquisition of BASF's Surface Technologies business adds a new offering in the area of high-technology coatings to Curtiss-Wright's existing portfolio of niche coating technologies,” said Curtiss-Wright chairman and CEO Martin R. Benante.
BASF's Surface Technologies business applies several types of thermal spray coatings, including high-velocity oxygen fuel (HVOF), plasma spray and flame spray coatings, which can all be tailored to the specific end-use application. The business saw $29 million in sales in 2010 and has about 150 employees at its three operating facilities.
Headquartered in Paramus, NJ, Curtiss-Wright's Metal Treatment segment provides precision metal treatment services, including shot peening, shot peen forming, laser peening, heat treating and specialty coatings for the commercial aerospace, automotive, power generation and processing industries.