12/12/2008

BASF expands coatings business in ASEAN

• Eason Paint appointed as toll manufacturer
• BASF will supply services to motorcycle customers directly

Bangkok /  Münster. BASF has expanded its coatings business in ASEAN, with Thailand at the center, to serve the large coatings market in the region for motorcycles, industrial coatings, and the automotive industry.

BASF (Thai) Limited today reached an agreement with Eason Paint Plc (Thailand) to become the manufacturing base for BASF customers across ASEAN, including automotive and industrial coatings customers. BASF motorcycle coatings in Thailand will be exclusively produced by Eason Paint.

 BASF also signed an agreement today to acquire the motorcycle coatings business of NOF (Thailand) Limited, establishing its own sales and marketing function in Thailand to support customers in the ASEAN region. As one of world’s leading coatings suppliers, BASF will now directly provide its full set of competencies to the customers in the region and fully participate in all market opportunities.

The signing ceremony for the agreement was held in Bangkok on December 11 in the presence of Mr. Pracha Chivapornthip, Chairman and Managing Director of BASF (Thai), Mr. Mutsuo Aoki, Group Vice President, Regional Business Management BASF Coatings Asia Pacific,Mr. Sanan Eksangkul, President of Eason Paint and Ms. Petcharat Eksangkul, Managing Directorof Eason Paint. Ms Jongluck Nitikitpaibool, the new head for BASF’s coatings business in the ASEAN regionwas also present.

The coatings market in ASEAN, with a total size of EUR 2.8 billion, accounts for about 15% of the entire coatings market in Asia-Pacific. Thailand represents the largest coatings market within ASEAN but there is also significant growth in Vietnam, Indonesia and the Philippines. ASEAN is therefore of increasing importance in the overall coatings strategy of BASF. “We foresee high growth potentials in the regional coatings industry and we are determined to strengthen our position here with high-quality technologies and comprehensive services”, said Mr. Aoki.

Pursuing this strategy, BASF will continue to work with strong partners. “The set-up with Eason Paint manufacturing BASF’s first-class paint locally is an ideal fit for us,” explained Mr. Pracha. “We have strong confidence in Eason Paint as our long-term business partner. Our combined competencies in technology, production and service will create added value to our customers in ASEAN not only in the motorcycle business but also in automotive OEM and industrial coatings,” he added. With the new business set-up, BASF aims at successfully supporting automotive and industrial coatings customers in the region by providing the highest level of technical service and customer care well known by BASF’s global customers.