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2 SAMPLE - EMISSION CONTROL CATALYSTS It s all about markets MARKETSANDMARKETS sales@marketsandmarkets.com

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4 TABLE OF CONTENTS 1 PREMIUM INSIGHTS MARKET OVERVIEW EMISSION CONTROL CATALYTIC COVERTERS OXIDATION CATALYSTS DIESEL OXIDATION CATALYSTS MARKET DYNAMICS DRIVERS Stringent emission regulations due to increased concern over environmental pollution INDUSTRY TRENDS VALUE CHAIN ANALYSIS BARGAINING POWER OF SUPPLIERS EMISSION CONTROL CATALYST MARKET, BY TYPE PLATINUM-BASED EMISSION CONTROL CATALYSTS EMISSION CONTROL CATALYST MARKET, BY APPLICATION INDUSTRIAL APPLICATION REGIONAL ANALYSIS NORTH AMERICA MEXICO ASIA-PACIFIC COMPETITIVE LANDSCAPE MARKET SHARE ANALYSIS COMPETITIVE SITUATION AND TRENDS NEW PRODUCT LAUNCH COMPANY PROFILES BASF CATALYSTS LLC BUSINESS OVERVIEW PRODUCTS OFFERED KEY STRATEGY RECENT DEVELOPMENTS SWOT ANALYSIS MNM VIEW

5 U Sample - Emission control catalysts LIST OF TABLES TABLE 1 PLATINUM-BASED EMISSION CONTROL CATALYST MARKET SIZE, BY REGION, ($ BILLION) 11 TABLE 2 NEW PRODUCT LAUNCH,

6 LIST OF FIGURES FIGURE 1 FIGURE 2 ASIA-PACIFIC REGISTERS THE LARGEST MARKET GROWTH ACROSS ALL THE THREE APPLICATIONS 6 PGMS WILL HAVE HIGH DEMAND IN EUROPE AND NORTH AMERICA BETWEEN 2013 AND 2019 FOLLOWED BY ASIA-PACIFIC AND ROW 7 FIGURE 3 DIESEL OXIDATION CATALYST 8 FIGURE 4 TYPICAL EMISSION REDUCTION PERFORMANCE BY DIESEL OXIDATION CATALYSTS 8 FIGURE 5 STRINGENT EMISSION CONTROL REGULATIONS HAVE BEEN DRIVING THE MARKET 9 FIGURE 6 FIGURE 7 FIGURE 8 FIGURE 9 LARGE SHARE OF DIESEL CARS MAKES EUROPE THE LEADING REGION FOR PLATINUM AUTOCATALYSTS 11 POWER PLANTS ARE THE LARGEST SOURCE OF INDUSTRIAL EMISSIONS BOTH IN EUROPE AND NORTH AMERICA 12 THE REVISION OF EMISSION STANDARDS IS GOING TO BOOST THE MEXICAN MARKET GROWTH 14 U.S. & CHINA WILL CONTINUE TO BE THE LEADERS OF THE EMISSION CONTROL CATALYST MARKET 15 FIGURE 10 GLOBAL EMISSION CONTROL CATALYST MARKET SHARE, BY KEY PLAYERS, FIGURE 11 BASF CATALYSTS LLC: BUSINESS OVERVIEW 19 FIGURE 12 BASF CATALYSTS LLC: SWOT ANALYSIS 23 5

7 1 PREMIUM INSIGHTS FIGURE 1 Market Share (%) % ASIA-PACIFIC REGISTERS THE LARGEST MARKET GROWTH ACROSS ALL THE THREE APPLICATIONS Total = $ Billion % % % % % % % % % % Automotive Industrial Others Source: Secondary Research, Expert Interviews, and MarketsandMarkets Analysis 6

8 FIGURE 2 PGMS WILL HAVE HIGH DEMAND IN EUROPE AND NORTH AMERICA BETWEEN 2013 AND 2019 FOLLOWED BY ASIA-PACIFIC AND ROW Palladium Platinum Rhodium North America PGMs AUTOCATALYSTS MARKET Palladium Platinum Rhodium Asia Pacific Palladium Platinum Rhodium Europe Palladium Platinum Rhodium RoW Note: Value by $Billion Source: Secondary Research, Expert Interviews, and MarketsandMarkets Analysis 7

9 2 MARKET OVERVIEW 2.1 EMISSION CONTROL CATALYTIC COVERTERS OXIDATION CATALYSTS D I E S E L O X I D A T I O N C A T A L Y S T S The diesel oxidation catalysts (DOC) is a key technology for diesel engines that possess high oxygen content of the exhaust that make the three-way catalysts less efficient. The diesel oxidation catalysts convert carbon monoxide (CO) and hydrocarbons (HC) into carbon dioxide (CO2) and water, eliminating the diesel particulate matter by oxidizing the hydrocarbons that get absorbed in the carbon particles. FIGURE 3 DIESEL OXIDATION CATALYST Source: Infrastructure Planning and Facilities Website FIGURE 4 TYPICAL EMISSION REDUCTION PERFORMANCE BY DIESEL OXIDATION CATALYSTS Source: NETT Technologies Inc. and Website for Diesel Oxidation Catalysts 8

10 2.2 MARKET DYNAMICS DRIVERS S t r i n g e n t e m i s s i o n r e g u l a t i o n s d u e t o i n c r e a s e d c o n c e r n o v e r e n v i r o n m e n t a l p o l l u t i o n FIGURE 5 STRINGENT EMISSION CONTROL REGULATIONS HAVE BEEN DRIVING THE MARKET Current Regulations Future Regulations U.S. Europe US Tier 2, CA LEV II US 2007 US 2010 Global 4a Global 4b US 2010 Euro 3 Euro 5 Euro 5 Global 4a Euro 4 Euro 6 Global 4b CA LEV III Brazil Russia India China South Korea Euro 3 Euro 4 Euro 4 Euro 3 Euro 3 Euro 4 Euro 4 Euro 3 Euro 3 Euro 4 Euro 5 Euro 3 Euro 5 Euro 5 Euro 4 Euro 4 Euro 5 Euro 5 Euro 4 Euro 5 Euro 5 Japan Vietnam Euro 6 Global 4a Global 4b Euro 3 Thailand Euro Source: Secondary Research, BASF Website, Expert Interviews, and MarketsandMarkets Analysis 9

11 3 INDUSTRY TRENDS 3.1 VALUE CHAIN ANALYSIS BARGAINING POWER OF SUPPLIERS In the emission control catalyst market, the bargaining power of supplier is low-to-medium based on the following factors: Large number of PGM and other metal suppliers leading toward low switching cost: PGMs act as catalysts for emission control, especially for the automobiles. The PGMs are highly expensive compared to metals such as vanadium and tungsten, which are extensively used in the industries for controlling NOx and other harmful emission control. The demand for emission control catalysts is increasing due to tighter environmental regulations set by the environment regulatory bodies. There are companies that are traders as well as consumers of the PGMs. Thus, the metals used for emission control are available with several companies or traders which decrease the supplier s bargaining power. Large number of PGM catalyst suppliers leading to low switching cost Rise in demand for emission control catalyst due to stringent regulations Less scope for product differentiation for suppliers Rise in demand for emission control catalyst due to stringent regulations: The new stringent emission regulations set by the environment regulation authorities and the obligation to meet these standards by automobiles and industries are leading to increase the demand for emission control catalysts. This enhances the bargaining power of suppliers to a certain level. Less scope for product differentiation for suppliers: The PGMs and other metal suppliers do not have much scope to differentiate their products or add any further value to the product. Therefore, the suppliers have low bargaining power. 10

12 4 EMISSION CONTROL CATALYST MARKET, BY TYPE 4.1 PLATINUM-BASED EMISSION CONTROL CATALYSTS The rise in the sale of diesel vehicles in North America and the introduction of more stringent Euro 6 and Euro 7 emission rules in Europe are expected to require high platinum loadings in catalytic converters. This is projected to further increase the prices of platinum as an emission control catalyst in the next five years. TABLE 1 PLATINUM-BASED EMISSION CONTROL CATALYST MARKET SIZE, BY REGION, ($ BILLION) Region CAGR% ( ) North America Europe Asia-Pacific RoW Total Source: Secondary Sources, Manufacturers of Emission Control Association (MECA), Association for Emission Control Catalysts, Diesel Net Technology Guide, Fidelity, Factiva, Expert Interviews, and MarketsandMarkets Analysis FIGURE 6 LARGE SHARE OF DIESEL CARS MAKES EUROPE THE LEADING REGION FOR PLATINUM AUTOCATALYSTS Europe % Asia-Pacific % North America % RoW $Billion % CAGR (%) Source: Secondary Sources, Manufacturers of Emission Control Association (MECA), Association for Emission Control Catalysts, Diesel Net Technology Guide, Fidelity, Factiva, Expert Interviews, and MarketsandMarkets Analysis 11

13 5 EMISSION CONTROL CATALYST MARKET, BY APPLICATION 5.1 INDUSTRIAL APPLICATION The various technologies that are used in industrial IC engines to contain the emissions are non-selective catalytic reduction (NSCR) catalysts, NSCR three-way catalysts, industrial emission control catalyst market Size, by region, ($ billion) Region CAGR% ( ) North America Europe Asia-Pacific RoW Total Source: Secondary Sources, Manufacturers of Emission Control Association (MECA), Association for Emission Control Catalysts, Diesel Net Technology Guide, Fidelity, Factiva, Expert Interviews, and MarketsandMarkets Analysis FIGURE 7 POWER PLANTS ARE THE LARGEST SOURCE OF INDUSTRIAL EMISSIONS BOTH IN EUROPE AND NORTH AMERICA INDUSTRIAL EMISSION CONTROL, REGIONS DESCRIPTION GLOBAL MARKET SIZE, 2013 ($BILLION) GLOBAL MARKET SIZE, 2019 ($BILLION) 1 North America Power plants is the largest source of greenhouse gas emission in the U.S. accounting for almost % of the country s greenhouse gas pollution. Power plant emission decreased since However, there was an increase in the emission due to increased use of coal in Petroleum and refineries is the second largest stationary emission source while refineries are the third The EPA is taking stringent steps to address the pollutions from these sources 2 Europe Europe has the most stringent regulations in terms of industrial emissions control and the European regulatory body is the most active in monitoring and introducing regulations needed to further control the amount of harmful emissions from the industries Europe is a significant consumer of coal and coal-fired power stations is still one of the major sources of industrial emissions. Air pollution control measures for such polluting industries will drive the market in Europe 12

14 3 Asia-Pacific China is one of the largest emitter of green house gases. China ordered its most polluting industries to cut down their emissions to % in the next few years Beside strengthening regulations at national level, different environmental bodies are working together with the Asia-Pacific countries to curb industrial emissions 4 RoW Brazil is one of the significant emitters of industrial pollutants. Agriculture accounts for the largest share of the Brazil s greenhouse gas output and the fastest emission growth was from the energy sector. However, its energy sector is slightly eco-friendly in comparison to other countries due to its advanced bio-ethanol industry. Russia also plans to commit to lower CO 2 targets and reduce harmful emissions Source: Secondary Sources, Manufacturers of Emission Control Association (MECA), Association for Emission Control Catalysts, Diesel Net Technology Guide, Fidelity, Factiva, Expert Interviews, and MarketsandMarkets Analysis 13

15 6 REGIONAL ANALYSIS 6.1 NORTH AMERICA MEXICO FIGURE 8 THE REVISION OF EMISSION STANDARDS IS GOING TO BOOST THE MEXICAN MARKET GROWTH 2013 MEXICO CURRENT MARKET SCENARIO Market Size = $billion CAGR% ( ) = % Industrial emission control catalyst market Other emission control catalyst market Automotive emission control catalyst market $ Bn $ Bn $ Bn Mexico accounted for % of the automotive production in The positive growth is expected to continue as automotive manufacturers continue to invest in Mexico Revision of emission standards (based on stringent EU and U.S. regulations ) are expected 2019 $ Bn $ Bn Automotive emission control catalyst market Industrial emission control catalyst market $ Bn Other emission control catalyst market Source: Secondary Sources, Manufacturers of Emission Control Association (MECA), Association for Emission Control Catalysts, Diesel Net Technology Guide, Fidelity, International Organization of Motor Vehicle Manufacturers, Chemicals Technology.com, Implats, Metal Prices, Diesel Forum, Environmental Leader, Factiva, ICIS, Expert Interviews, New Articles, and MarketsandMarkets Analysis 14

16 6.2 ASIA-PACIFIC Emission control market for industrial application, by volume is projected to grow almost at a same pace with market for automotive industry due to introduction of new environmental regulations for power plants and cement manufacturing plant in the China. Emission control catalyst market for other applications is projected to grow at a slow CAGR of % from 2014 to FIGURE 9 U.S. & CHINA WILL CONTINUE TO BE THE LEADERS OF THE EMISSION CONTROL CATALYST MARKET USA CHN DEU GBR FRA JPN BRA ITA CAN RUS MEX KOR IND Source: Source: Secondary Sources, Manufacturers of Emission Control Association (MECA), Association for Emission Control Catalysts, Diesel Net Technology Guide, Fidelity, International Organization of Motor Vehicle Manufacturers, Chemicals Technology.com, Implats, Metal Prices, Diesel Forum, Environmental Leader, Factiva, ICIS, Expert Interviews, New Articles, and MarketsandMarkets Analysis 15

17 7 COMPETITIVE LANDSCAPE 7.1 MARKET SHARE ANALYSIS FIGURE 10 GLOBAL EMISSION CONTROL CATALYST MARKET SHARE, BY KEY PLAYERS, 2013 Leader in emission control catalyst market Broad product portfolio for automotive, industrial, locomotive, and marine applications and subapplications Others include AeriNOx, Clean Diesel Technologies, Inc. (US), Heraeus Holding GmbH, and many more % % % % % Holds the largest number of patents which proves strong R&D expertise BASF Johnson Matthey Umicore Catalar Corporation Clariant Top 3 companies accounted for a share of ~% of the global emission control catalyst market % Cormetech DCL International % % Others Held the second position in the global emission control catalyst market Continuously launching innovative emission control products Actively partnering with different players Source: Annual Reports, Press Releases, Investor Presentations, Expert Interviews, and MarketsandMarkets Analysis BASF Catalysts accounted for the leading position in the global emission control catalysts market in It has expertise in development of emission control catalysts for both stationary and mobile applications. BASF Catalysts is focusing on expending its capabilities in the emerging regions for emission control catalysts. It has established good relationship with all the major global and regional emission control catalyst customers. The company s R&D expertise helped it to have the largest number of patents among the emission control catalyst players. Besides expanding in different regions, the company is continuously developing its emission control catalysts and coming up with innovative solutions for its customers. It is determined to maintain its leading position in the emission control catalysts market in future also. Johnson Matthey accounted for the second position in the market with % market share in It has good understanding of emission control technology process and industry know-how which is prominent through its continuous product launches. The company has benefited from its improved product mix and is well positioned in the growth markets. Johnson Matthey is continuously focusing on its emission control catalyst business as it believes that increasing environmental regulations in North America, Europe, and Asia-Pacific and the recovering automotive market will provide a great opportunity for its growth in this market. 16

18 Umicore ranked third with a share of % in The company operates in all the major regions, in some regions through joint ventures. It possesses a broad portfolio for emission control catalysts which includes catalysts for both mobile as well as stationary applications. To maintain its position in the market, the company has been focusing on continuous technological innovation and expansion. It believes that increasing stringent emission norms to promote clean air will drive the company s emission control catalysts business. Other players in the emission control catalysts market include Catalar Corporation, Heraeus Holding GmbH, Clariant, Cormetech, DCL International, AeriNOx, Clean Diesel Technologies, Inc. (US), and many more. These players are also continuously growing their presence and developing innovative technologies to reduce harmful emissions from different sources. 7.2 COMPETITIVE SITUATION AND TRENDS NEW PRODUCT LAUNCH New product launches accounted for a share of % of the total strategic development in the global emission control catalysts market. Companies, such as Johnson Matthey (U.K.), BASF Catalyst (U.S.), Clariant (Switzerland), and DCL International (Canada) adopted this strategy to enhance their product portfolio. TABLE 2 NEW PRODUCT LAUNCH, Date Company Name Development Market Importance May 2014 BASF Catalyst (U.S.) The company launched LNT+CS4F emissions system, a system that can remove PM (Particulate Matter), as well as CO (Carbon Monoxide), HC (Hydrocarbons) from harmful emissions. The company aims to help automakers meet new strict emission regulations in Europe. March 2014 Johnson Matthey (U.K.) The new compact SCRT system reduces NOx, PM, CO, HC Emissions from stationary diesel engines and helps to comply with the Tier 4 compliance. February 2014 BASF Catalyst (U.S.) BASF introduced VOCat 200 series base metal catalyst for reduction of emissions from PTA processes. The company aims to broaden its portfolio of stationary emissions control catalysts. 17

19 January 2014 Johnson Matthey (U.K.) The new catalyst helps to selectively oxidize CO but does not oxidize NO, thus helps diesel and dual fueled reciprocating engines with high exhaust NOx emissions to meet both new federal RICE NESHAP requirements and also state opacity regulations. January 2013 Johnson Matthey (U.K.) Johnson Matthey introduced Concat GT SCR catalyst. The product can reduces up to % of NOx emissions from gas turbines. January 2013 Johnson Matthey (U.K.) Johnson Matthey introduced low cost IC SCR system for stationary engines. The new system is to % less costly than a typical SCR system, yet offered the same NOx reduction performance. November 2012 Clariant (Switzerland) Clariant introduced oxygen catalysts, threeway catalysts for reducing harmful exhaust emission from natural gas and diesel engines used for electrical power generation. The objective is to enhance the product portfolio. May 2012 Johnson Matthey (U.K.) Johnson Matthey developed Modulex that converters incorporate advanced catalyst technology and design to ensure maximum catalyst performance and simple maintenance. The product can convert as much as % of HAPs, CO, NOx, HC and VOC emissions from gas engines. September 2010 DCL International (Canada) The company launched a diesel particulate filter, MARINE-X that successively removed soot and particulate matter emitted from the diesel engine. September 2010 Johnson Matthey (U.K.) The new, redesigned, advanced passive regenerating CRT and diesel particulate filter system helps to reduce PM, CO, HC, and CARB NO2 effectively. September 2010 Johnson Matthey (U.K.) Johnson Matthey introduced its new, innovative, and cost effective EcoNOx 3-way and 2-way catalytic converters and convertersilencers which will reduce emission as well as noise from any size stationary gas engine. Source: Press Releases 18

20 Revenue ($Mn) R&D Expenditure (%) Sample - Emission control catalysts 8 COMPANY PROFILES 8.1 BASF CATALYSTS LLC BUSINESS OVERVIEW BASF Catalysts LLC is a global division of the chemical giant BASF SE (Germany) and is headquartered in Iselin, New Jersey, U.S. The company was initially known as Engelhard Corporation and in 2006 BASF acquired the company and renamed it as BASF Catalysts LLC. The division supplies environmental and process catalysts for different industries including chemical, power plant, and automobile industry. The company offers exceptional expertise in the development of technologies that protect the air and prevent it from getting polluted. The group has over 30 manufacturing sites worldwide. The catalysts division develops and produces mobile as well as stationary emission catalysts for worldwide customers and is expanding its leading role in catalyst technology through continuous process and product innovation. The company is considered among the top three players in the field of emission control catalysts and its major competitors include Johnson Matthey plc and Umicore SA. FIGURE 11 BASF CATALYSTS LLC: BUSINESS OVERVIEW COMPANY AT A GLANCE RECENT FINANCIALS (FUNCTIONAL MATERIALS & SOLUTIONS) 2013 Founded: 2006 Headquarters: New Jersey, U.S. % % % Employees: 112,206 (For BASF SE) Revenue: $Million (BASF SE, as in 2013) R&D $Million (BASF SE, as in 2013) % % Ownership Public % REGIONAL REVENUE MIX FOR CATALYSTS (2013) BUSINESS REVENUE MIX (2013) % % $Mn (2013) % Europe North America Asia-Pacific % % % $Mn (2013) % Chemicals Functional Materials and Solutions Performance Products Oil and Gas % South America, Africa, and Middle East % % Agricultural Solutions Others Source: Secondary Source, Factiva, and Company Website Note: BASF restructured its Functional Materials and Solutions Division in The figures for 2011 are before restructuring 19

21 8.1.2 PRODUCTS OFFERED Product type Application/Description Catalyzed Soot Filters (CSF) or Diesel Particulate Filters (DPF) The Catalyzed Soot Filters (CSF) is designed to reduce emissions of particulate matter (PM) from diesel engines up to %. Diesel Oxidation Catalysts (DOC) Diesel Oxidation Catalyst (DOC) technology can be used to control emissions of hydrocarbons (HC), carbon monoxide (CO), and particulate matter (PM) from diesel vehicles. Lean NOx Traps (LNT) This technology can control NOx (nitrogen oxides) emissions from lean burn gasoline or diesel engines and consists of a combination of oxidation catalyst, adsorbent, and reduction catalyst. SCR on Filter This technology is the combination of SCR and DPF and controls emissions from diesel engines. AMoX ammonia oxidation catalysts The product is designed to prevent ammonia breakthrough in SCR systems. LNT & CS4F This system will help the customers to meet the strict Euro 6c emission regulations. This system eliminates one catalytic component in comparison to LNT+CSF+UF-SCR (Under Floor Selective Catalytic Reduction) systems; thus, reducing system weight, space, and complexity. TWC (Three-Way Conversion) catalyst These catalysts are used for higher conversions of CO, HC, and nitrogen oxides (NOx) over a wide range of conditions in gas engines. FWC (Four-Way Conversion) catalyst This catalyst can remove Particulate Matter (PM), as well as CO, HC and NOx) from gasoline-engine exhaust. Lean GDI Catalysts The product has exceptionally high thermal stability and NOx reduction efficiency. Small engine catalysts BASF small engine catalysts are designed to cut more than half of harmful emissions from two- and four-stroke engines that run on gasoline fuel. 20

22 EVAPTRAP It is a patented innovative technology used to absorb hydrocarbons without increasing backpressure. CAMET oxidation catalyst systems The product helps destroy HC, CO, NOx, and particulate matter from natural gas and oil fired turbines and boilers. SCR catalyst The product is highly effective at cutting NOx emissions from powergenerating equipment. NOxCAT AD Series 100, 200, 300, VNX, ZNX The product helps control ammonia emissions from natural gas fired turbines and stationary engines as well as coal fired power plants. CHARCat This catalyst removes over 83% of the VOC and particulate matter and controls the smoke and gas emitted from char broilers. VOCat VOC catalysts (VOCat 350 HC, VOCat 360 PFC, VOCat PTA, VOCat RCO) This product controls emissions of HC and other VOC from a wide variety of industrial processes. Source: Company Website KEY STRATEGY BASF Catalysts being a division of a renowned group does live up to the expectations through continuous research and innovations. Also; it registers the largest number of patents in global emission control catalysts. It strives for improvements in terms of technology in the field of both mobile and stationary emission catalysts. The division also focuses on developing new and improved products for the process chemicals industry, where successful research combines market input with scientific insights to develop innovative products to reduce harmful emissions. BASF, to maintain its leadership, is not only depending on its R&D capabilities but also it is expanding in different developing regions. The stringent regulations for clean air are helping to increase demand in different regions. 21

23 8.1.4 RECENT DEVELOPMENTS Date Approach Description Significance October 2014 Expansion BASF started a three year expansion project to double the companies production capacity for mobile emission catalysts in Shanghai, China. The project will add new light duty emissions catalysts production lines, a new heavy duty diesel catalysts plant and a state-of-the-art automated warehousing facility. The increasing customer demand and changing environmental regulations required the company to plan the expansion. The development is expected to help the company to strengthen its position in the Chinese and Asian automotive market. July 2014 May 2014 Expansion New Product Launch BASF Catalysts expanded its production capacity of mobile emission catalysts in Środa Śląska, Poland. The construction of the largest emission catalyst plant in Europe started in 2012 and completed in Additional investments are expected to follow which will make the total investment of the plant approximately $ million ( million). The objective of this expansion is to produce emission catalysts for light duty gasoline vehicles and light and heavy duty diesel vehicles manufacturer to meet Euro 6/VI emissions regulations. The company launched LNT+CS4F emissions system, a system that can remove PM (Particulate Matter), as well as CO and HC from harmful emissions. The company aims to help automakers meet new strict emission regulations in Europe. February 2014 December 2013 New Product Launch Expansion BASF introduced VOCat 200 series base metal catalyst for reduction of emissions from PTA processes. The company aims to broaden its portfolio of stationary emissions control catalysts. BASF expanded its mobile emissions catalysts production capacity in Chennai, India. Nine manufacturing lines are expected to be started in the manufacturing facility to produce light duty, heavy duty, and motorcycle emissions control catalysts. The plant is expected to start in the first half of The objective is to meet the increasing demand and technology needs from the automobile industry. February 2013 Expansion The company expanded its emission control production facility in Indaiatuba, Brazil. BASF made 7-digit euro investment to increase its production capabilities in the region where demand is increasing due to the implementation of Proconve P7 (Euro V equivalent) regulations for heavy duty diesel vehicles. July 2012 Expansion BASF upgraded and expanded its emissions catalyst production operation in Nienburg, Germany to meet the growing demands of emission catalysts in the European and Asian market. The company invested a double-digit million euro sum to cope up with the demand of innovative and cost-effective emissions control systems for gasoline and diesel engines. 22

24 June 2011 Joint Venture BASF joint ventured with Sumitomo Metal Mining Co. to double the production capacity at Ibaraki, Japan for its heavy-duty diesel emissions catalysts. The plant came on-stream in first half of The company aimed is to target the Japanese mobile emission market. June 2011 Expansion The company invested $ million ( million) in the next two years to double its mobile emission catalysts production capacity of the plant located in Shanghai, China. It aimed to meet the rising demand of emission control catalyst in rapidly growing Asia-Pacific, especially the Chinese automotive market. Source: Secondary Research, Press Releases, and Company Website SWOT ANALYSIS FIGURE 12 BASF CATALYSTS LLC: SWOT ANALYSIS STRENGTHS High focus on R&D Diversified presence and end users Strong relationship with all major global and regional OEMs Presence in the raw material industry (precious material) Stringent environmental regulations in both automotive and industrial applications Growing automotive market, especially in developing regions Increase in number of power plants S O W BASF CATALYSTS LLC T WEAKNESS High dependency on the automotive market Strong competition from other leading players OPPORTUNITIES THREAT Source: Company Website, Annual Reports, Press Releases, and MarketsandMarkets Analysis MNM VIEW BASF Catalysts is one of the leaders in the emission control catalysts market, globally. Besides providing high-quality, innovative products with regulation maturity, it has increased its proximity to its customers to better meet their demands. The company has a diversified product portfolio and has strong presence across the European, North American, and Asian regions, in some cases through joint ventures. It combines economic success with environmental protection and social responsibility. The company is rightly focusing on emerging markets such as China, India, and Brazil by expanding its production facility to meet the increasing demand. It is focusing more on the automotive application than on the industrial application. 23

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