Basf plans new paint plant and intends to double its share in the chemical area
Valor Econômico
BASF has decided to increase its bets in Brazil, considered one of the markets with biggest potential for growth among the emerging markets. The investments of the company in the country should be at € 250 million, between 2010 and 2014, told Alfred Hackenberger, Chairman of the group for Brazil and South America to Valor. "We have plans to build a new paint plant in Guaratinguetá (SP). "The market of paints is one of the most important ones for the German group in Brazil. Owner of Suvinil, leading brand in the market, BASF will also invest to increase the productive capacity of its plant in São Bernardo do Campo (SP) by 30%, reaching the final capacity in that unit. In an evaluation made by the headquarters of the company, the future plant to be installed in the industrial complex of the company in the interior of São Paulo, the investment is estimated at US$ 30 million.
"In the past years, the investments of the company in Brazil were nearly € 200 million (in a four year period)". The segments of paints and agrochemicals are responsible for more than half of the revenue of the company in the country. Now, the company wants to double the participation in the chemical area in the Brazilian market, which accounts for 5% of the earnings. In the world, such area represents 15% of the total. The portfolio of the division includes basic chemicals, adhesives, solvents, plasticizers and polyurethanes.
With global revenue of € 50.7 billion in 2009, South America registered revenue of € 3 billion, € 1.93 billion of which in Brazil. The global crisis has affected the businesses of the group, which had a strong fall in sales last year, 18.6% compared to 2008, but the emerging countries, including Brazil and the Asians, have given support to the company worldwide. The agricultural area lived its best years in 2008 and 2009. "They were not so affected by the crisis as other segments." Europe, with strong weight in the sales of the multinational, is still in recovery and faces a new crisis. BASF has a strong sales channel in the exports and Asia is one of the main destinations of its production.
Regardless of the crisis, last year the group announced the construction of a sodium metilate plant in Guaratinguetá. This product is a catalyst for the production of biodiesel, segment in which BASF intends to grow. This will be the second metilate unit of the group in the world - the first is located in Germany. This plant will have capacity for 60 thousand tons/year and should go into operation in the second half of 2011. The company already caters to 40% or 50% of that market with a material it imports from Germany - the goal is to get to 65% of the market.