Brand Finance Chemicals 10 2017

BASF remains the most valuable chemicals brand with a value of US$6.6 billion. The company made a net profit of US$729 million in the final quarter of 2016 and recently completed the acquisition of Albemarle’s global surface treatment business, Chemetall. BASF is aiming to grow profitably in downstream, innovation and solution-focused businesses. In line with these objectives, its brand identity is intended to signify ‘connectedness, innovative solutions and valueadding partnerships’. Sustainability is a further theme, borne out by the strapline, “We create chemistry for a sustainable future”. BASF, like other brands in the chemicals sector, is able to effect genuine environmental change to support what its branding promises. Just one recent example has been the introduction of a new enzyme (Natuphos E) for agricultural feed to reduce the production of phosphorus, an excess of which can destabilise ecosystems.

Dow, the second most valuable and second fastest growing brand, has a value of US$4.7 billion after enjoying 57% growth. At the end of 2015, the company announced that it had commenced operations at its new ethylene production facility in Freeport. Dow’s Gulf Coast investments will provide a solid foundation for long-term growth whilst bolstering market competitiveness. Dow is nearing the end of the regulatory approval process for its upcoming merger with DuPont, whose brand value has grown 29% to US$3 billion. The US$130 billion deal could be concluded as early as the second quarter of this year. The aim of the mega-merger is to create a stronger agri-chemical business. A rebrand or new combined brand could result in ‘DowDuPont’ topping the league table next year, however given significant anti-trust concerns, keeping the brands separate post-merger could be advisable.