Thailand - Bayer unit bullish on Asean's potential

Bayer MaterialScience AG, a unit of the German chemical and pharmaceutical giant, is upbeat about growth prospects in Southeast Asian markets such as Thailand after seeing sales rise by 25% over the past 12 months.

Chairman Patrick Thomas said the expected strong growth in northern Asean markets will benefit Bayer's Map Ta Phut plant and Bang Pu research and development centre, which are the sole facilities of their kind serving the entire region.

Northern Asean markets Thailand, Cambodia, Vietnam, Laos and Myanmar grew by 24-25% last year from 2010 compared with 10% growth in the southern Asean area of Malaysia, Indonesia, Singapore, the Philippines and Brunei, he said.

Bayer MaterialScience products include polycarbonates, polyurethanes, coatings and adhesives.

These materials supply industries such as electronics, automotive, construction, furniture and footwear.

Bayer MaterialScience's annual sales total 10-11 billion (407-447 billion baht), accounting for one-third of the Bayer Group's turnover worldwide.

The electronics and transport sectors each generate 2 billion in sales.

Plastics makers are shifting production from China farther south to countries such as Thailand, Malaysia, Vietnam and Laos, due partly to rising labour costs.

"The Asean bloc is a huge manufacturing centre for the plastic industry. Bayer has followed the market trend," Mr Thomas said during a visit to Bangkok last week.

"While the ageing population is growing in China due to the single-child policy, northern Asean has a large pool of young, well-educated and skilled labour."

The Asian car industry has been more progressive in using lightweight components than have western automakers.

Bayer supplies nearly all Japanese carmakers including Honda and Toyota, as well as Chinese brands like Chery for interior items such as seating and insulation. The automotive and electronics industries account for 40% of Bayer MaterialScience's global sales, with demand driven by China, Japan, South Korea and northern Asean.

The company has a large plant in Rayong's Map Ta Phut area that has served both domestic demand and exports since 1999.

Development at the Bang Pu research centre in Samut Prakan has included turning non-food-based feedstock into biological functional products.

Bangkok Post

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