2007-22-10

BASF Opens Asia's First PCI Tile Adhesive Plant in Foshan

• World-class facility with an annual production capacity exceeding 50,000 tons
• Platform for the transfer of global tiling systems technology to China
• Chinese customers to benefit from technical support, advisory services, product innovations and processes

Foshan, China, October 22, 2007 - BASF today celebrates the inauguration of Asia's first PCI tile adhesives plant in Foshan, Guangdong Province, designed to provide a platform for the transfer of cutting-edge tiling systems technologies and solutions from Germany to China for the benefit of the local construction chemicals sector.

With an annual production capacity of more than 50,000 tons, this world-class facility will turn out a broad product range under the PCI brand, including tile adhesives, leveling products, tile grouts, waterproofing materials and primer.

"Setting up the PCI plant is part of a BASF strategy to continually strengthen its commitment in China, which is currently the world's largest market for tiling products, with enormous business potential and opportunities yet untapped,"said Dr. Martin Brudermueller, Member of the Board of Executive Directors, BASF Aktiengesellschaft, responsible for Asia Pacific. "With our entry into the Chinese tile adhesive market, we will combine BASF's latest technologies with the ancient ceramics knowledge of Foshan to broaden our capabilities in serving the country's construction and other sectors."

Located in Foshan, the country's largest ceramics production base, the PCI plant will help establish direct links between BASF and local customers - including tile producers, contractors, craftsmen, distributors and developers - who will benefit from a broad portfolio of technical support, advisory services, product innovations and processes made available to them.

"With this world-class production facility in Foshan, PCI is not only broadening BASF's product portfolio, it will sustain our leading position and growth momentum in China and Asia," said Dr. Boris Gorella, Group Vice President and head of BASF's Construction Chemicals Business Unit, Asia Pacific. "Consumption of locally-made tiles in China rose to approximately two billion square meters in 2006. This plant will help us meet burgeoning demand and may foreshadow future investments."

Since its inception in Germany in 1950, PCI has risen to the status of a premium brand dominating the European tile adhesive market.

"By transferring established production technologies from Germany to China, it was possible to set up the plant in only six months without compromising safety, environment, health and the product quality," added Dr. Karsten Eller, the PCI China Project Leader. "The standard of the plant is at the same high level as our European operations."

Adapting to local customer requirements, PCI will customize its formulations in accordance with local standards for optimal product quality and feasibility. Benefits for local Chinese customers include: 

- Safer tiling: Superior adhesiveness of PCI products is designed to increase tiling safety and prevent tiles from collapsing

- Faster process: Compared with the traditional method, PCI's modern tile-laying techniques can boost the speed and efficiency of the process

- Reduced resource consumption: The high performance level of PCI products can help customers reduce consumption of raw materials like sand or cement

- Longer service lifespan: Excellent durability and resistance to acid rain in PCI products can help improve its capacity of withstanding wear-and-tear and prolong their service lifespans

To tie in with the plant's inaugural ceremony, PCI is also participating in the 10th Foshan International Ceramic Fair (YATAO Autumn Fair) from Oct 18-22 at the Foshan International Exhibition Centre. State-of-the-art tiling systems and practical demonstrations of them are presented at booth A56.

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