Source: Deutsche Bank
Deutsche Bank today announced that it has established a supply chain financing solution for BASF China, supporting the company and its suppliers in China with world-class working capital capabilities.
With this solution, BASF and its partners will benefit from more accessible risk mitigation and improved working capital flows, automated processes including reconciliation, settlement, forecasting and monitoring, and lower transaction costs to enable reduced transaction pricing. A number of BASF’s suppliers in China have already been on-boarded, and the solution is already in operation.
At a signing ceremony between BASF and Deutsche Bank China, BASF Asia Pacific Vice President Direct Procurement Dr. Bernhard Weigl said, “The supply chain finance program in cooperation with Deutsche Bank drives a “Win-Win-Win” situation, where BASF China can increase the efficiency of its cash flow turnover and strengthen its relationships with suppliers, where suppliers achieve a higher efficiency in their financing costs and operations, and where Deutsche Bank once again demonstrates its broad, innovative capabilities in supply chain finance.”
Deutsche Bank Greater China Head of Coverage Peter Qiu said, “We are very happy to further deepen our long-standing global and successful China partnership with BASF. This solution not only provides BASF and its suppliers stronger working capital support, it is also a prime example in action of the strategic importance of the China market to both BASF and Deutsche Bank. As one of the world’s leading banks in supply chain finance, we are delighted to work with clients seeking innovative solutions to strengthen their relationships with core suppliers, optimize their cash flows, and improve the economics of their supply chains.”
Founded in 1865, BASF Group is one of the world’s largest chemical companies, and has been a committed partner to Greater China since 1885. Today, BASF’s business in Greater China spans a comprehensive array of chemical products, and Greater China is the company’s third largest market after Germany and the United States. BASF has established production sites in Shanghai, Nanjing, and Chongqing, and operates its Innovation Campus Shanghai as the company’s regional R&D hub and global headquarters for its Advanced Materials & Systems Research Technology Platform.