28-Sep-2001 - BASF SE

BASF Opens Butyl Acrylate Plant in Brazil

On September 26, BASF will open its new butyl acrylate manufacturing facility in the Chemical Complex at Guaratinguetá in the State of São Paulo, Brazil. With this US$ 30 million investment, Guaratingueta in conjunction with Ludwigshafen, Germany; Antwerp, Belgium; Freeport,Texas, the United States; and Kuantan, Malaysia, becomes part of BASF's acrylic esters global production network, and at the same time becomes the center of BASF's regional production network in South America.

Dr Andreas Kreimeyer, president of the Functional Polymers Division, comments on the investment and on the current negotiations with Petrobras about the con-struction of an integrated acrylic acid complex at the Guaratingueta site: "The decision to realize this butyl acrylate investment and to negotiate an expansion by an acrylic acid complex and a superabsorbent plant is a logical one, given the high potential for sales of these products in the South American region, especially in the Mercosur. We are committed to this region, to our partners and to our colleagues even and particularly in difficult times, in times of discontinuity and change. As a transnational, globally operating company we have to carefully analyze changes in our business environment and changes in the global and regional political and economic development. And we have to anticipate changes in our competitive environment as well. This may trigger certain adjustments from time to time but will not change our general strategic path, unless we foresee extreme changes."

Butyl acrylate, which up to now had been imported into South America, will be used to supply the domestic market and even be exported, particularly to the other Mercosur member countries which include Brazil, Argentina, Paraguay and Uruguay in addition to Chile and Bolivia as associate members. BASF will be contributing to the improvement of the trade balance by producing this product domestically. Within Mercosur, Brazil is the largest market and has the greatest potential for growth. The infrastructure that has already been installed at the Chemical Complex in Guaratinguetá, a central location having the largest concentration of consumers and located near to its largest customers, are the main reasons for putting the manufacturing facility there.

Butyl acrylate is a derivative of acrylic acid and is used to produce adhesives raw materials, architectural coatings raw materials, industrial coatings raw materials, plastic modifiers, construction chemicals and paper coatings. Acrylic dispersions, which are downstream products of acrylic monomers such as butyl acrylate, are also made at the Guaratinguetá facility.

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