BASF establishes polyurethane system house in Thailand

BASF is establishing a polyurethane systems house at its existing site in Bangpoo, Thailand. The facility, which is the group’s 29th systems house worldwide, will start up in the first quarter of 2006, producing tailor-made systems for the footwear, appliances, automotive and construction sectors, the company announced on 12 May.

BASF said the system house in Thailand will work closely with its regional centre for polyurethane specialties, which is being established in Pudong, Shanghai. The Chinese site will include a Technical Research & Development Center, a PU system house and a production plant for thermoplastic polyurethanes (TPU). BASF is also planning to start up world-scale production plants for MDI and TDI, in Caojing, Shanghai, with partners in 2006.

“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. Demand for PU in Thailand is forecast to grow by around 6 % per annum over the next ten years, according to BASF. The country already accounts for 40% of the polyurethanes market in the ASEAN (Association of Southeast Asian Nations) region, the company adds.

 “Our new system house in Thailand is a further building block to strengthen our leading position in polyurethanes in the Asian growth market,” said Jean-Pierre Dhanis, president of BASF’s Polyurethanes division. BASF already operates system houses in Taiwan, Japan, Korea, Malaysia and China.