BASF doubles polymer dispersion capacity
BASF doubles polymer dispersion capacity
Tony Hotland, Jakarta
Chemical producer PT BASF Indonesia will double the annual
production of its polymer dispersion to 95,000 tons with the
total new investment reaching 10 million euros (US$12.34
million).
"This is a sign of our commitment to Indonesia despite ongoing
glitches in the economic and political situations. We believe
that Indonesia will overcome these problems," the president of
Southeast Asia BASF, Harald Lauke, said on Wednesday.
Polymer dispersion is a chemical substance used in the
manufacture of paint, paper, textiles, glue and materials used in
the construction industries. Its main raw material is water.
With production doubling, the firm projected its sales would
grow by 16 percent this year.
The company sees the prospect of an improving economy in
Indonesia and the Southeast Asian region with the establishment
of a free trade area among the members of the Association of
Southeast Asian Nations (ASEAN). This is expected to result in
increased demand for chemical products both in Indonesia and the
region.
"Indonesia needs at least 200,000 tons of polymer dispersion
per year. We also plan to export it and other chemical products
to China and India because we project that these two countries
will have bigger chemical market shares by 2015," said BASF
Indonesia president Danny Jozal.
BASF Indonesia currently has a plant in Cengkareng and one in
Cibitung. The company made a profit of 146 million euro in 2003
-- a 16 percent decrease over 2002 due to the stronger euro
vis-a-vis the U.S. dollar and the increasing prices of raw
materials.
Besides polymer dispersion, the company also produces
colorants, and vitamin and mineral premixes for animal nutrition,
as well as liquid and powder pesticides.
It has more than 670 consumers, with a 35 percent market share
for the commodities in Indonesia.
Globally, the BASF group produces around 8,000 products, 97
percent of which are chemical products. Its main investment
locations in the Asia Pacific region are China, Malaysia and
Singapore.
The German-based group earned 33 billion euro in revenue last
year with its biggest market being Europe. It has invested up to
$60 million in Indonesia.
Established in Indonesia in 1977, it initially operations were
confined to tape and cassette manufacturing. The company later
expanded into various other chemical fields, mainly polymer
dispersion and process chemicals.
In January 1997, the group withdrew from the tape and cassette
manufacturing business worldwide to concentrate more on its
chemical products.