BASF expands polyurethane production in Thailand

BASF, the world's leading supplier of polyurethane specialties, is continuing on its growth path with polyurethane specialties in Asia by establishing its 29th system house worldwide at its existing site in Bangpoo, Thailand.

From the first quarter of 2006, the plant will produce tailor-made polyurethane systems in close cooperation with customers from a wide range of industries, including the automotive and construction sectors. Approval for the project is currently being sought from the Thai authorities. Financial details have not been disclosed.

Customers will especially benefit from the advantages offered by BASF's regional polyurethane Verbund in Asia. In Caojing, Shanghai, the company and its partners are planning to start up world-scale production plants for the polyurethane basic products MDI (diphenylmethane diisocyanate) and TDI (toluene diisocyanate) in 2006; and in neighboring Pudong, Shanghai, a regional centre for polyurethane specialties is currently being established. The Pudong project consists of a system house, a production plant for thermoplastic polyurethanes (TPU), and a technical r&d centre that will work closely with the new system house in Thailand.

'Thailand is an important market for BASF that offers good perspectives. We will use our extensive expertise to achieve a strong competitive position,' said Chew Eng Soo, group vice president polyurethanes Asia Pacific at BASF.

In the coming 10 years the market for polyurethanes in Thailand is expected to grow annually by around 6%; today it accounts for 40% of the market in the ASEAN (Association of Southeast Asian Nations) region.

In Asia, BASF already operates system houses in Taiwan, Japan, Korea, Malaysia and China. It entered the market in Thailand in 1966, operates two sites in Bangpoo and Rayong, and currently has more than 200 employees. In 2004, the company posted sales of Euro 157 million in Thailand.