By Querubin J. Mi?as Saudi Gazette JEDDAH — Kanoo Group and the BASF subsidiary Elastogran, announced on Thursday plans to establish polyurethane (PU) system house in the Gulf. Under the joint venture agreement, in which Kanoo holds 51 percent and Elastogran - the one that will lead the operation - takes the rest, it will acquire the polyurethane business of Multi-Chemical Establishment in Abu Dhabi from the Al- Hamid Group by end of May 2008. The construction of a new polyurethane system house in Dubai Industrial City will start in mid-2008, the company statement said. The production of PU systems by the joint venture will be concentrated there by 2010. However, the purchase price was not disclosed. Polyurethanes are widely used in high resiliency flexible foam seating, rigid foam insulation panels, microcellular foam seals and gaskets, durable elastomeric wheels and tires, electrical potting compounds, high performance adhesives and sealants, Spandex fibers, seals, gaskets, carpet underlay, and hard plastic parts. The transaction is subject to approval of the relevant authorities. “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 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 the Kingdom and UAE. BASF is the leading supplier of polyurethane basic products, systems and specialties. With its global network of more than 30 Polyurethane System Houses and its comprehensive product and service portfolio, BASF is the preferred partner of its customers in many industries. “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 Dr. Uwe Hartwig, group vice president, Regional Business Unit Polyurethanes Europe. “We will strengthen existing customer relationships and consistently implement our world-wide 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.” With its approximately 20 employees Multi-Chemical Est. achieved as part of the Al-Hamid Group a turnover of around $20 million in the PU business in 2007. Founded in 1995, the company is one of the leading system houses in the region. 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 Europe, Elastogran - an established subsidiary for the past 40 years - is running the BASF polyurethane business via its system houses. It is both the market and technology leader of polyurethane systems and polyurethane specialty elastomers. Through its system houses, BASF provides fast local support - from technical service and sales to marketing - during the development of customized solutions. With its world-scale plants BASF secures its leading market position in the manufacture of polyurethane basic products in all regions of the world. __
