German chemicals firm BASF has announced an investment in the capacity expansion of polymer dispersions at its production site in Merak, Indonesia. The new expansion to provide additional styrene-butadiene (SB) dispersions to cater to the growth of new paper mills in Southeast Asia and Oceania, in line with the growing trend of high-quality packaging in ASEAN where key paper and board manufacturers are located.
“The expansion will bring additional supply reliability to fulfill the growing demand for acrylics and styrene-butadiene dispersions in the Southeast Asia, Australia, and New Zealand markets. It shows our commitment to enhancing regional production and providing quick responses to fulfill growing customer demand. It also reinforces BASF’s position as one of the leading and reliable suppliers in the region. With proximity to key raw materials and flexibility to produce both styrene-butadiene and acrylic dispersions, Merak remains a key supply point for all our customers, especially in the area of paper coatings,” said Bir Darbar Mehta, Senior Vice President of Dispersions Asia Pacific, BASF.
ASEAN is a fast-growing market for high-quality packaging, with a high concentration of major paper and board manufacturers looking to expand their capacities in the region. The BASF Merak site is located in close proximity to our monomer suppliers and has an on-site jetty to facilitate logistics. The production line enhancement will be completed in the second half of 2023.
The site in Merak, Indonesia, established in 1994, produces polymer dispersions that offer a comprehensive portfolio of paper coatings, architectural coatings, and construction applications.