BASF SEES STRONG DEMAND FOR PLASTIC PRODUCTS FROM AUTO INDUSTRY

JOHOR BAHARU (Malaysia), Nov 3 (Bernama) -- BASF, an international chemical
firm, sees strong demand for its plastic products, especially from the
automotive industry, says Hermann Althoff, Group Vice-President (engineering
plastics) for Asia-Pacific.

China is expected to be the largest consumer, with the country's automotive
industry surprisingly performing well despite the sluggish economic climate.

" The Chinese are now producing more cars than the Americans and Europeans.
There's a lot of potential for us in that country," he told reporters.

Althoff said demand from the automotive industry will also be the main
driver to BASF to achieve double-digit sales target in the Asia-Pacific
operations.

" We've been seeing double-digit sales over the last few years and we expect
to see same performance based on strong demand from the automotive industry," he
said.

BASF produces oil sensors, cylinder head covers, fans, air coolers and the
newest product is the head lamp bezels, among others.

Althoff said BASF's automotive products helped the industry to produce more
light-weight cars.

Besides automotive products, BASF also manufactures polyamide and
polybutylene terephthalate engineering plastics for the electrical, electronics,
medical and construction industries.

It has plastic engineering products manufacturing plants in Pasir Gudang,
South Korea and China. The newest plant has been set up in India to cater for
Japan and Asia-Pacific region.

" Our operations in India are picking up albeit on a much lower volume," he
said.

The plant in India, set up early this year, can produce only 9,000 tonnes
of polyamide and polybutylene terephthalate engineering plastics while the
plants in Pasir Gudang in this Malaysia's southern city and China can
manufacture up to 45,000 tonnes.

The plant in South Korea produces 18,000 tonnes of engineering plastics
every year.

The Pasir Gudang plant exports 90 per cent of its production to Australia,
China, India, Indonesia, Thailand, Japan and South Korea.

" Sixty per cent of the production in Pasir Gudang are exported to Japan and
Thailand, our largest markets," he said.

On the domestic front, Althoff said BASF is negotiating with Proton and
Perodua to supply car plastic components.

BASF, he said, had also developed a new high-quality plastic water meter
expected to receive overwhelming demand in the region.

He said the product has been exported to China, Indonesia and South Korea.

" The Chinese have started using the water meter and we foresee strong
demand for the product. The water meter complies with government regulations in
Asian countries," he added.
-- BERNAMA