05 February 2009 04:58 [Source: ICIS news]
By Prema Viswanathan
(Adds words “project development work” to replace “orders” in para 2 and adds "a technical centre in" to precede the word “Japan” in para 16 for clarity)
NEW DELHI (ICIS news)--Despite the global economic meltdown and the petrochemical downcycle, BASF's engineering plastics business in Asia remains relatively unscathed, a senior executive of the German chemical major said on Thursday.
"Despite the decline in demand seen in the automotive sector, which is a key consumer of engineering plastics, no project development work has been cancelled in Asia," BASF Asia-Pacific group vice president for engineering plastics Hermann Althoff told ICIS news in an interview on the sidelines of PlastIndia 2009.
Engineering plastics such as polyamide and polybutylene terephthalate (PBT), which were niche, customised products, are not as sensitive to market volatility as high volume commodity plastics, he said.
"Asia occupies No 3 position in terms of our sales, after Europe and
"Even though automotive sales has declined in Asia in recent months, our sales of polyamide and PBT continue to be robust, largely because we are able to offer cost-effective solutions to our customers to help them tide over the ongoing global economic crisis," Althoff said.
The solutions offered by BASF to automotive makers, for instance, included innovative products that reduced production cost, increased fuel and energy efficiency, enhanced safety and reduced emissions, he said.
"By replacing metal components with engineering plastics in
Even aluminium parts were 40-50% heavier than plastic parts, he said. "By substituting metal car seats with those made from engineering plastics, we have been able to reduce weight by 40% and cut production cost by 25%," he pointed out.
The one-shot moulding process also speeded up the production process, which would otherwise have consisted of 22 assembling steps and been more labour-intensive, he said.
In the case of electrical and electronic applications, BASF offers halogen-free flame retardant materials made of polyamide and PBT which eliminate waste disposal issues, Althoff said.
"These materials are also less dense than halogenated materials, and therefore more cost-efficient."
BASF's new Ultramid PBT grades conform to the new regulations imposed by the European Union for products coming in contact with food items and were therefore an attractive option for Indian customers seeking to export to
The German major, which is one of the world's leading engineering plastics makers, had no intention of shutting down its plants in
BASF had set up a 45,000 tonne/year polyamide and PBT compounding plant in
The raw materials polyamide and PBT for the Asian compounding plants come mainly from BASF's polyamide and PBT plants in
The low per capita consumption of engineering plastics by the automotive industry in
"Compared to European cars, which use 25kg of polyamide each, South Korean cars use only 15kg, Japanese cars 7kg, and Indian and Chinese cars less than 7kg. So there is tremendous scope for replacing metal car parts with engineering plastics."
To discuss issues facing the chemical industry go to ICIS connect
For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.
Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
|ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index|
Asian Chemical Connections