Covestro opens regional headquarters in Bangkok

Covestro (Thailand) Co, a high-tech polymer producer, has chosen Thailand as its base in Asean, planning to use facilities here to boost demand for its products in the region.

Formerly known as Bayer MaterialScience, a unit of the Bayer Group, the new separate entity is looking at opportunities to expand in Asean.

Its regional headquarters officially opened yesterday in Bangkok.

“The region is of growing importance for Covestro as it represents the company’s second largest market in Asia-Pacific after China,” said president Samir Hifri, adding that it sees strong potential in Asean after the region’s economic integration.

Previously its operations in Asean had been through Bangkok for Thailand, Laos, Vietnam, Myanmar and Cambodia, and through Singapore for the city-state, Malaysia, Indonesia and the Philippines.

Covestro selected Thailand as its regional headquarters on the back of its heavy investment in assets and human resources here, as well as the size of its market.

“The network linking businesses and the government is mature here compared with other countries in the region,” said Mr Hifri.

Over the past five years Asean’s GDP has jumped by 50% while its trade value grew by US$1 trillion. Moreover, 70% of its population is below the age of 30.

“There’s plenty of potential here,” he added.

It is now focusing on maximising the benefits and efficiency of existing assets after heavily investing in production and facilities over the years.

“With our current capacity we can serve demand across the globe with annual growth projected at 3-4% over the next five years,” said Mr Hifri, adding that the projection takes China’s slowdown into account.

Covestro set up a polycarbonate (PC) production facility in Map Ta Phut Industrial Estate in 1999, producing 200,000 tonnes per year by 2005 and 275,000 tonnes by 2010.

It also has a polyurethane (PU) production plant in Bang Pu Industrial Estate, which turns out 22,000 tonnes a year.

The company also has production facilities in Germany, Belgium, the US and China.

Its major polymer products include PU, PC, coatings, adhesives and speciality chemicals.

Last year, sales from Asia-Pacific accounted for 27%, with half from China and the rest from Asean, Mr Hifri said.