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BASF Coatings opens its new plant for SUVINIL in São Bernardo do Campo - Brazil

Published on 2004-04-02. Author : SpecialChem

BASF Coatings opens a new plant for SUVINIL – decorative paints brand – in São Bernardo do Campo, São Paulo, Brazil on March 22. The new facility extends up to 6,000 square meters, and represents an overall investment of 2.0 Mio. Euro. This new plant strengthens the Coatings site in São Bernardo do Campo as the major coatings production center of BASF in South America.

The plant brings along a series of benefits to the decorative paint business increasing the capacity of the site of 30% and by reducing production cost and complexity of logistics.

BASF also counts on another production site for decorative paints in Jaboatão (PE), as well as distribution centers in Santa Cruz (RJ) and Sapucaia do Sul (RS).

"The new plant construction represents an important step for our company. It underlines our confidence in the growth potential of the Brazilian market, says Rui Goerck, Vice-President of BASF's coatings business in South America. Despite the economic difficulties over the past few years, South America still has a lot of strategic importance," explains Goerck. Over the last three years, BASF invested about 100 millions Euros in the region, among of which 85% were spent on projects in Brazil.

Currently, the Brazilian market produces around 600 millions of liters of decorative paints a year, out of which 30% stand for BASF's production.

Suvinil: The Paint of Brazil

The products stretched out of Suvinil brand – Decorative Coatings Department of BASF – are unanimous amongst consumers. A proof of it is that Suvinil holds 30% of the market share, out of which 53% stand for the Top Segment (Premium Line), which consists of the lines PVA, acrylic latex, polishers, greases, varnishes, epoxy and complements. All these products are developed in Brazil. The technology, a wide portfolio – with options for several different needs –, and the strong policy for distribution are all signals of such leadership.

In 2003, Suvinil was chosen as the most acknowledged brand by consumers, that is, in the 13th Top of Mind Award, carried out by Folha de São Paulo, an important Brazilian newspaper. The brand was also selected by consumers in the previous year, when the Paints category was created. This publication by Folha de São Paulo has existed since 1992, and is carried out by DataFolha in several different regions within Brazil, electing the most acknowledged brands by consumers. The Top of Mind Award stands for the Brazilian "Oscar" for brands recognition.

History in brief

Suvinil S.A. – Indústria e Comércio de Tintas was founded in 1961. It came after the Super Indústria e Comércio de Tintas, Vernizes e Resinas Ltda., a company that had then been operating in Pompéia (SP) since 1945. The brand was born of a merging between Super and Vinil, the latter was known for producing the base for paints. In 1970, these merged companies founded Glasurit do Brazil, a company within the BASF Group, that came as a result of a merging between Glasurit Combilaca and Suvinil.

Finally, in 1994, BASF S.A. was founded, hence marking the end of a union of BASF Group companies in Brazil, comprising the companies Glasurit do Brasil, Glasurit do Nordeste – which had been founded in 1980 – BASF Brazil and BASF Química da Bahia.

BASF : A major international player in coatings

BASF Coatings AG belongs to the global Coatings Division of the BASF Group. In 2003 the Coatings Division achieved world sales of 2.0 billion euros. The Coatings Division develops, produces and markets a high-quality range of innovative automotive OEM coatings, automotive refinishes and industrial coatings as well as decorative paints, and also the processes needed to apply them. In this business, eco-efficient water-based, powder and high-solids coatings as well as radiation-curable systems play a special part. In Brazil, the company has been successful in the decorative paints market for years and holds the leading position. BASF has a major, global presence in the Coatings sector, with significant market positions in Europe, North America, South America and the Asia/Pacific region, for example with affiliates in Australia, China, India, Japan, and the Philippines.

BASF is the world's leading chemical company, offering its customers a range of high-performance products, including chemicals, plastics, performance products, agricultural products, fine chemicals as well as crude oil and natural gas. Its distinctive approach to integration, known in German as "Verbund," is its strength. It enables BASF to achieve cost leadership and gives the company a competitive advantage. BASF conducts its business in accordance with the principles of sustainable development. In 2003, BASF had sales of about €33 billion and over 87,000 employees worldwide. BASF shares are traded on the stock exchanges in Frankfurt (BAS), London (BFA), New York (BF), Paris (BA) and Zurich (BAS).

Source: BASF Coatings AG


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