The well-known chemical company in Germany and beyond, BASF, which has been running an office in the capital as of January, expressed an interest in setting up a manufacturing plant in Ethiopia.
Carles Amengual, managing director of BASF East Africa Ltd, told The Reporter that the chemical giant focuses on Kenya and Ethiopia as prime markets. Despite vast ventures in many businesses, BASF still operates in small sales office.
According to Amengual, BASF has supplied the agriculture sector in Ethiopia with mainly pesticides and herbicides for the last ten years.
These days, in addition to sphere of influence in the agriculture sector, the European chemical giant has expanded into the home and personal care consumables.
“We are trying to expand the business here in other industries like homes and personal care, detergent, body lotion, hair care, construction, leather and footwear,” Amengual said.
BASF officials and technical experts have frequented the capital to get in touch with potential local distributors and customers. Two months ago, BASF had gathered about 35 personal and home care manufacturing companies to buy raw materials and chemical components. On Wednesday officials of BASF from Dubai and Johannesburg were in town customizing local contractors with BASF manufactured construction inputs. BASF is longing to penetrate the Ethiopian construction market with products like admixtures or additives that are ideal for augmenting the performance and quality of concrete mixes. Polyurethane, a material applied in different bundling applications, and waterproofing and flooring solutions are some of the items BASF is planning to embark on in Ethiopia.
Oumer Abdulahi, general manager of Afro Chemical and Steel PLC, said that his company has been working with BASF for the past ten years. Currently, Afro Chemical is dealing with BASF to erect a manufacturing plant here but says it’s too early to provide details of the negotiations. Francis Kirema, business lead and general manager of BASF trade representative office in Addis Ababa, told The Reporter that, since January, he has been witnessing challenges his company and many local and foreign companies are facing. Hard currency shortages, customs clearance and logistics are some of the hindering factors where the new venture shares with these existing firms.
Back in 2011, in accordance to the company’s strategy to expand in Africa, BASF erected two manufacturing plants in Kenya and Uganda. They hope to replicate that same trend in Ethiopia.
Founded 150 years ago, BASF has been involved in the construction of Burj Khalifa, the US World Trade Center, Dubai World Trade Center, Dubai International Airport, Doha Convention Center and the like. Here in Ethiopia, BASF construction materials are involved in the constructions of the African Union Grand Hotel, the Commercial Bank of Ethiopia branch offices, and Sheba Leather Factory (phase 2).
[TheReporterEthiopia]