BASF has opened its new Polyurethane (PU) Solutions System House in Dubai, boosting its global network which comprises 38 System Houses.

These System Houses, together with the company’s vast central production sites for the main chemical precursors and basic products, are designed to further BASF’s aim of being one of the leading polyurethane manufacturers that can reliably provide its customers around the globe with locally-manufactured products.

The new facility was officially launched last month during a ceremony held at the recently-completed Elastogran Kanoo Polyurethane Systems site in Dubai Industrial City (DIC).

BASF Polyurethanes president Wayne  Smith commented: “This investment further emphasises the significance of this region for BASF and demonstrates that we are prepared to accompany our customers’ growth in all regions of the world and desire to be their preferred partner of choice. Out of Dubai, we will strengthen existing customer relationships in the Arabian Peninsula and implement our proven worldwide strategy of locally operated, customer-oriented System Houses.”

Dr Joerg Schneider, the managing director of new facility, was heavily involved in bringing the BASF System House concept to the Arabian Peninsula in his previous role with the PU divisional headquarters in Brussels. BASF strengthened its business with polyurethane customers in the Gulf region with its long-term partner in the region, Kanoo Group, under the name of Elastogran Kanoo Polyurethane Systems.

The joint ventures acquired the local polyurethane systems business of Multi Chemical Establishment from Al Hamed group in Abu Dhabi in 2008. The business was successfully integrated into the BASF structure while multiplying the business in the first years  of operation out of the former site in Mussaffah.

The new state-of-the-art facility occupies 2.8 hectares of land in the chemical business zone of the DIC, which is strategically located between growing industrial areas of Dubai and Abu Dhabi.

The System House itself was built using a high share of BASF building materials and construction know-how with strict adherence to the company’s worldwide commitment to sustainability both in the products themselves and in its manufacturing practices and a particular focus on energy saving. Since PU itself is an excellent insulator it is not surprising that it features heavily: the building was constructed using the latest generation of PU sandwich elements in the façade, supplied by ThyssenKrupp in Germany and manufactured with BASF PU systems, the PU insulation boards in the roof supplied by Ecotherm of the Netherlands again used Elastogran products. The front elevation of the offices features EIFS (exterior insulation finishing system) supplied by BASF Construction Chemicals locally as were coatings for the concrete finishes and flooring sealants.

The production plant features BASF’s latest technology and the building boasts a futuristic high-rack storage facility and a technical development and training centre. The new facility was transformed from a bare patch of desert to a full-fledged essential element in the vast BASF empire in just 230 days from start to finish.

“This is a reflection of the commitment of the various players such as System Construct, the main contractor, and the various subcontractors to teamwork and a well-formulated plan,” said Schneider, singling out sister company BASF Construction Chemicals, Kanoo Group and Summertown for particular praise.

The new plant has ample capacity to satisfy the market needs now and into the future to satisfy the company’s current market leadership position in polyurethane solutions in the Gulf region.

According to Schneider, the facility will develop, serve and manufacture innovative PU systems for a wide range of industries and in the construction and insulation especially, BASF sees strong potential for applications using high-quality specialty plastic material polyurethane to expand further in the future. Sandwich elements, insulating boards and spray foam are ideal products for energy-efficient and uncomplicated constructions.

“Polyurethane and polyurea systems will further complement and strengthen BASF’s strong local position in construction materials such as flooring applications,” said Schneider, who has also identified the important industries such as oil and gas, footwear, appliances and electronics, transportation, sports and leisure and furniture as markets to be served by the local BASF PU team in the future.
BASF Polyurethanes Europe senior vice-president Dr Uwe Hartwig said: “With this new System House, we have created best conditions for further success in the rapidly growing market for polyurethane applications in the Arabian Peninsula. Like all our System Houses, Dubai will not only have local sales and production units, but it will also provide customers with fast, competent and comprehensive technical services.”

The Kanoo Group has been a joint-venture partner of BASF in the UAE since 1970. “We are committed to continue our co-operation with BASF in the polyurethane segment and we are proud of the realisation of this new System House as an integral part of a joint growth strategy in the Gulf region,” said Mishal Hamed Kanoo, deputy chairman of the Kanoo Group.