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    Breaking News

    Kanoo and the BASF subsidiary Elastogran to establish polyurethane system house in the Arabian Peninsula

    Kanoo and the BASF subsidiary Elastogran to establish polyurethane system house in the Arabian Peninsula

    Tim Wright05.29.08
    BASF is strengthening its business with polyurethane (PU) customers in the Gulf region. The BASF subsidiary Elastogran and the Kanoo Group have agreed to create a joint venture (Kanoo 51%, BASF/Elastogran 49%) under the operational lead of Elastogran. This joint venture will acquire the polyurethane business of Multi Chemical Est. in Abu Dhabi from the Al Hamid Group by end of May 2008.

    With its approximately 20 employees Multi Chemical Est. achieved as part of the Al Hamid Group a turnover of approximately $20 million in the PU business in 2007. Founded in 1995, the company is one of the leading system houses in the region.

    In a next step, the partners plan to construct a new polyurethane system house in Dubai Industrial City. Construction is to commence in mid-2008. The production of PU systems by the joint venture will be concentrated there as of 2010.

    "With the acquisition of the polyurethane business from Multi Chemical Est. we have created ideal conditions for our success in the strongly growing market of polyurethane applications in the Arabian Peninsula," said Uwe Hartwig, group vice president of the regional business unit polyurethanes Europe. "We will strengthen existing customer relationships and consistently implement our worldwide proven strategy of locally operating customer-oriented system houses. Through its engagement in the Gulf region, BASF is strengthening its global network of more than 30 polyurethane system houses."

    "We are happy to continue and expand our cooperation with BASF into the polyurethane segment offering innovative, valuable and highly customized PU systems," said Mishal Hamed Kanoo, deputy chairman of The Kanoo Group, whose company has been a joint venture partner of BASF in the United Arab Emirates (UAE) since 1970.

    In the market segments construction and insulation especially, BASF sees great potential for applications with the high-quality specialty plastic material polyurethane throughout the Arabian Peninsula market. Sandwich elements, insulating boards and spray foam are ideal products for energy-efficient and uncomplicated constructions, both in the industrial and in the private housing sector. Elastopor H offers well-established applications for the construction sector.

    In Saudi Arabia and UAE, BASF markets almost the entire range of BASF products. The main focus is on petrochemicals, gas purification, oilfield industries, seawater desalination, packaging and construction industries. In addition, two production sites for construction chemicals are being operated in Saudi Arabia and UAE.

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