BASF’s presence in Bahrain

The plant, one of the largest of its kind worldwide, is 100% owned by BASF and managed by its Plastic Additives unit. Its objective is to become the leading manufacturer of customer-specific antioxidant blends (CSB), an additive required by the region’s flourishing plastic industry. Plastic additives increase the thermal stability of polymeric materials.
Antioxidants prevent oxidation, which degrades the colour, appearance and performance of plastics.

Dr. Gordian Schilling, BASF’s managing director in Bahrain who has seen the project through the planning, design and construction phases says the facility will provide rich impetus to the region’s petrochemicals industry and increase employment prospects for qualified Bahrainis.

“The plant is the centre-piece of BASF’s strategy to lead the share in the Middle Eastern antioxidant blends market, and it was after due consideration that the company decided to host its new regional facility in Bahrain,” he says.

“Some of the major factors that appealed to us as investors were the country’s central geographical location, excellent transport infrastructure and a strong protection of intellectual property rights reinforced by BASF’s 100% ownership of the site, something that is crucial for a specialty chemicals producer like us.”

The plan to move to the new facility was a timely decision and has since proven right. “BASF has been active in the region for many years now and our facilities in Saudi Arabia have served as a critical link in our network,” he adds.

Over the past few years the company has seen a growth in demand for additive blends in the regional market. New facilities have given the company more operational muscle to respond to customer requirements. The time saved and the responsiveness of its manufacturing facilities has translated into increased revenues for the company, says Schilling.

“Previously, we had to count on other sites in our global network including Asia, Europe and the Americas for supplying raw materials to the region. This exposed our customers in the region to the vulnerabilities surrounding long-distance supply chain logistics.”

Article continues on next page …

For BASF’s customers in Bahrain, the advantages of having a plant within their borders are likely to be more pronounced – the company can now avoid the freight bottlenecks on the causeway linking Bahrain with Saudi Arabia.

“So far, the feedback we have received from our customers who comprise giant petrochemical companies in the GCC and the wider region has been positive. They realise we are passionate about extending a better quality of service and basing ourselves in their proximity,” he says.

Apart from logisitical-value of the plant, the facility also offers a competitive advantage in the way it manufactures product in Bahrain. The plant uses 5S methodology, (a process improvement tool that helps companies to ‘Sort, Straighten, Shine, Standardize and Sustain), in its manufacturing mechanisms. The tool is designed to help boost customer confidence and assure stakeholders that products are high quality and customised to specific requirements.

Schilling believes that the environmentally-compliant BASF is a symbol of BIIP’s success. The BIIP prides iself as a location for high-quality foreign direct investment in Bahrain, offering tax-free benefits and full duty free access to GCC markets.

“The authorities see us adding value to their proposition. We have had regular meetings with the Industry and Commerce Minister Dr Hassan Fakhro, and found their engagement quite proactive.” Nearly 70% of the site’s workforce comprises GCC nationals, the vast majority Bahraini. Schilling is quick to point out that this is a record unmatched by other businesses operating at the BIIP.

“BASF is proud of its contribution to the economy of our host country. We reiterate our support in providing skilled employment to Bahraini citizens, which is a core priority for the Bahraini government.

Personally, it is exciting to observe the enthusiasm of the local workforce as it reflects the manner in which BASF operates in every region of the world where we have a presence. Our Bahraini employees are proud to be an integral part of a global workforce, even if few have ever worked for a global multinational with a distinct corporate culture.”

The company goes to great lengths to weave itself into the local social and cultural fabric. “We believe all foreign companies have a moral obligation to adapt to local traditions and ways of life,” he explains. It was a learning curve for the company – especially so for Schilling, who previously managed BASF sites in China.

“It is not as if the processes had no teething problems. It is natural to expect some challenges in a project of such dimensions. But I am proud of the way we got our new investment in Bahrain off the ground with the wonderful assistance of our partners. It is testimony to BASF’s ability to operate successfully in all markets.”

Schilling signs off with a hope that BASF’s Bahrain investment may be a precursor to other capital investments in the region. When such new investments happen, they will complement the strategic importance of the Bahrain facility.

“BASF is creating its own legacy here in Bahrain and in the Middle East as part of our progressive vision for the region.”

About the project
BASF’s plant in Bahrain was inaugurated last year to produce antioxidant blends in Bahrain. The process used to extrude blends ensures high dispersion of all raw materials. The high dispersion has a few advantages for BASF’s customers when stabilising the polyolefins.

Higher impact resistant forms result in fewer shut-downs and the newly developed modifications help to ensure that BASF is able to deliver CSBs with the lowest possible dust levels. The company can also deliver in house access to specialist catalyst and polymer stabilisation expertise as well as multifold contacts to polymerisation plants.

Leading to cross-over development potential especially for the two fields of polyolefin polymerisation catalyst and polyolefin stabilisation.