BASF, the largest chemical producer in the world, has touched down in Myanmar, unveiling their first production facility for construction chemicals in Yangon's East Dagon Industrial Zone on Friday.
The company, based in Ludwigshafen, Germany, has up until this point relied on imports for bringing its wide range of products – from pesticides to personal care – to Myanmar, where they have recognised a need for “high quality, tailor-made concrete admixtures to meet increasing demand for construction chemicals.”
Nearly 200 people attended a luncheon at the new factory on the outskirts of Yangon to hear brief speeches from BASF Asia Pacific region executives, as well as Deputy Head of Mission for the German Embassy Wolfgang Erdmannsdörfer and Joint Secretary for the Myanmar Investment Commission Daw Mya Thuza – followed by a press briefing at the Sedona Hotel.
According to the company's website, BASF has made a name for itself developing special concrete mixtures able to withstand harsh climates and logistical challenges, playing a key role in construction of the Burj Khalifa in Dubai, and providing support for projects in Myanmar including the Yeywa hydropower dam, Thilawa Special Economic Zone and Myingyan steel mill
In addition to difficulties that the company faces in finding and retaining highly skilled workers in Myanmar, BASF Thailand managing director Petrus Ng, who also oversees Myanmar, pointed out the need to address current irresponsible practices.
“In Myanmar today they use a lot of stone from the river. This will not be sustainable. So for most of southern Myanmar, you have to go to aggregate, from the marble where you blast it and grind it into smaller pieces,” Petrus Ng said.
While BASF has been bringing a wide range of products to customers in Myanmar since 2012, it wasn't until 2015 that they opened an office in Yangon. In 2017, the company generated about $10.5 million in revenue from their activities in Myanmar, and its Construction Chemicals division, which operates in more than 60 countries, generated nearly $3 billion.
“For me, I think it is a very important milestone for BASF in Myanmar, and we are really looking forward to this country,” Petrus Ng said. “Vietnam opened up their market 30 years ago, and BASF has grown tremendously there, so I'm looking forward that this will one day be happening in Myanmar as well.”