BASF, the giant international chemical company based in Germany, has acquired two plants in Thailand as part of its worldwide expansion aimed at maintaining annual business growth of 7 per cent.

One of the facilities, to be renamed BASF Construction Chemicals, produces admixtures and "construction systems" and was purchased from Degussa in Chon Buri. The second is Engelhard Chemcat (Thailand), in Rayong province, which the group acquired from Engelhard this year. It produces auto-emission catalysts.

John Fastier, managing director for the Asean market, said the chemical market in this region was the world largest and fastest growing. BASF has capitalised in this region over the

past few years. As a result, the group has a total of five plants in Thailand.

The original plant is for super-absorbent polymers, in Rayong. Twin plants Polyurethanes System House and a plant for the production of choline chloride and vitamin premix for animal nutrition are in Bangpoo Industrial Estate in Samut Prakan province.

BASF group in Thailand produces various chemical products including agricultural products, functional polymer, acrylic monomer and super-asorbents, textile chemicals, plastic and fibres, polyurethanes and fine chemicals.

Pracha Chivapornthip, chairman and managing director of BASF (Thailand), said the group has been operating in Thailand

for 40 years. It services 500 corporate customers in Thailand and earned more than Bt9.5 billion last year.

The group expects total business will grow by 7 per cent this year, with total earnings increasing to more than Bt10 billion.

Some multinational operators are direct competitors of the group, including Bayer of Germany, Dow of the United States and Carien of Switzerland.

Pracha said the group would maintain its market share in Thailand by adding new products as well as enhancing technology.

"Thailand is one of the most important markets in the Asean region, as many companies are locating here. We foresee some emerging opportunities in sectors such as automobiles, foods, textiles and construction materials," said Pracha.

The expansion in the Asean market is part of BASF's long-term strategy for the group to become a major manufacturer in these emerging markets.

BASF has over 95,000 employees and posted sales of more than ¤42.7 billion (Bt2 trillion) in 2005.

Suchat Sritama

The Nation