By Nathan Allen 
 

BASF SE (BAS.XE) is aiming to increase profitability by sharpening its portfolio and implementing a series of measures related to production, logistics, and R&D, the chemicals group said Tuesday as it released a new strategic plan.

The German company said it will run a program between 2019 and 2021 that should deliver 2 billion euros ($2.29 billion) a year in additional earnings from the end of 2021.

This will allow BASF to increase earnings before interest, taxes, depreciation and amortization before special items by between 3% and 5% a year, the company said.

Streamlining the current divisional structure to include six major segments will also help the group deliver its targets, BASF said.

"We will sharpen our portfolio and focus our capital allocation more towards growing business areas," said Chief Executive Martin Brudermuller, who took up the position in May.

BASF emphasized the importance of Asia, and particularly China, to its growth strategy. The company expects China's market share in global chemicals to increase to 50% by 2030 compared with around 40% currently.

Write to Nathan Allen at nathan.allen@dowjones.com

(END) Dow Jones Newswires

November 20, 2018 02:55 ET (07:55 GMT)