BASF Will Purchase Taiwan Xin Shun Company To Integrate TPU Business

Chemical giant BASF and TPU adhesives base manufacturing company, Taiwan Xin Shun Co., Ltd. have concluded a final agreement confirming the acquisition of all business and assets of the latter in mainland China and Taiwan.

Announcing the news, BASF said it planned to systematically gain growth in the "potential TPU market".

Raimar Jahn, the company's performance material director, commented: "acquisition is a useful supplement to our existing TPU product mix and strengthens our manufacturing in Asia."

TPU in

It has a wide range of uses, such as Adidas's energy.

(Energy Boost), which is made from BASF Infinergy foam material.

BASF believes that providing integrated solutions for TPU and TPU adhesives will help enhance product value.

This

It is expected to be completed in 2015.

The two sides temporarily agree not to disclose details of the agreement.

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To let Hou Yuzhe, President of the Asia Pacific region of BASF, the world's largest chemical group, see, in any case, the potential of Southeast Asian markets is no match for China.

"The Southeast Asian market is not as big as China. For example, there are only 30 million residents in Malaysia, which is obviously not as big as China's market opportunities," he said.

As we all know, due to the soaring cost of labor, land rent, hydropower and so on, over the past 5 years, the manufacturing industry in the world, especially the labor-intensive industries such as textiles, clothing and shoemaking, has been pferring to Southeast Asia.

For example, Nike and Adidas closed their factories in China two years ago, and moved to less developed ASEAN countries such as Laos, Kampuchea and Vietnam. Japan's auto manufacturing industry also increased investment and layout in Thailand.

Even small and medium sized enterprises in China are making a lot of camping in ASEAN countries.

For a while, the public opinion about China's Industrial Hollowing up was rampant.

In this way, Hou Yuzhe's initial remarks were almost contrary to the trend of history.

Of course, we have reason to doubt the sincerity of the senior professional managers of pnational corporations. They are trained through public relations and are good at diplomatic language.

But when Hou Yuzhe came up with a bunch of data and gave up all kinds of facts, you had to reexamine those misconceptions about Southeast Asia.

In a word, the Southeast Asian market is not as impressive as public opinion has said.

The chemical industry as the cornerstone of almost all industries, of course, must follow the steps of manufacturing industry.

In other words, the layout of the chemical industry can also prove the development level of the local manufacturing industry.

A simple comparison between BASF's integrated factory in Kuantan and the Yangba integration base in Nanjing makes it easy to explore Hou Yuzhe's true view of China and Malaysia's business opportunities.

In 1997, BASF landed in Malaysia, jointly established with BASF National Petroleum Company, BASF Ma Petroleum Chemicals Co., Ltd. and set up the first Asian chemical plant in Kuantan, Malaysia, with a total investment of about 900 million US dollars.

Up to now, 7 years ago, only 30% of the land used for building factories had been built, and 70% remained to expand slowly after the subsequent expansion.

The integrated chemical plant in Kuantan has an annual output of 650 thousand tons, mainly supplying Southeast Asian and South Asian markets.

In 2000, BASF and Yangzi Petrochemical Joint Venture built in Yangba base in Nanjing, so far, the total investment amounted to US $4 billion 500 million, producing 3 million tons of chemicals and polymers annually, and all of them supply the mainland China market.

The Yangba base has become the largest organic chemical plant in Asia.

Hou Yuzhe moved from Hongkong to Shanghai last April.

In the past 3 years, he has taken charge of all the business of BASF in the Asia Pacific region (including East Asia, Southeast Asia, South Asia, and even Australia and New Zealand). Now he has moved to Shanghai. He is still president of the Asia Pacific region, but he focuses on the Chinese market and is president and chairman of Greater China. This highlights the importance of the Chinese market.