Investments in PU System Solutions for Growing Markets in Poland, the Czech Republic and Slovakia

Two new System Houses to be built near Posnan and Bratislava / Extension of market leadership / Now four System Houses in Central and Eastern Europe

Ludwigshafen, (PresseBox) - As the leading supplier of polyurethane (PU) system solutions worldwide, BASF is further expanding its global network. With the establishment of two System Houses in Poland and Slovakia by the subsidiary Elastogran, BASF will meet the demand of the rapidly growing markets in Central and Eastern Europe. BASF is already the leading provider of PU specialties in these markets with sites in Hungary and Russia. Just like all other System Houses the new sites will also have local production, sales and development units to provide fast and competent service to their customers.

The market for PU systems in the Czech Republic and Slovakia is currently growing at rates of over 7%. The sustained demand is mainly driven by the automotive industry. In 2009 BASF will start local production and development of PU systems in the new System House near Bratislava thus further extending its leadership in this market.

In Poland BASF is also the market leader for polyurethane system solutions and the expected growth rates of up to 7% over the nextfew years are mainly achieved in the construction, cooling appliances and automotive industries. The new System House in Posnan will be commissioned in 2010.

"These investments will assure our leading position in polyurethanes and show our customers that we are prepared to accompany their growth in all regions of the world and that we want to be their preferred partner", says Jacques Delmoitiez, President BASF Polyurethanes. "Our over 30 System Houses and the productions sites for the basic products MDI, TDI and polyols in all regions make us the only polyurethane manufacturer, who can supply its customers worldwide from local production sites." Only recently BASF has established a System House in Dubai and is planning further investments in the PU system business.

"Such commitment sustainably strengthens our leadership position in the attractive markets of Central and Eastern Europe", says Dr. Uwe Hartwig, Group Vice President BASF Polyurethanes Europe. "We will continue to expand our System House network systematically in the years to come. Our customers will therefore always be able to rely on the quality of our products and services wherever they may be", underlines the Managing Director of Elastogran.

"These investments in central Europe's growing markets emphasize the significance of our region for BASF", says Herbert Frankenstein, Head of the Business Centers Europe Central.

About BASF Polyurethanes

BASF is the leading supplier of polyurethane basic products, systems and specialties. With its global network of more than 30 Polyurethane System Houses and its comprehensive product and service portfolio, BASF is the preferred partner of its customers in many industries.
In the European Economic Area Elastogran - an established subsidiary for the past 40 years - is running the BASF polyurethane business via its System Houses. In Europe, Elastogran is both the market and technology leader of polyurethane systems and polyurethane specialty elastomers (www.elastogran.com).

Through its System Houses BASF provides fast local support - from technical service and sales to marketing - during the development of customized solutions. With its world-scale plants BASF secures its leading market position in the manufacture of polyurethane basic products in all regions of the world.

Polyurethanes make life more comfortable, safer and more pleasant - and they help to save energy sustainably. They contribute towards an improved insulation of buildings and a more attractive and more light-weight design of cars. The manufacturers of shoe soles, mattresses and household as well as sports equipment use the manifold opportunities and advantages of this special plastics material together with the knowledge and expertise of the polyurethane experts of BASF world-wide.

BASF IT Services Holding GmbH

BASF is the world's leading chemical company: The Chemical Company. Its portfolio ranges from oil and gas to chemicals, plastics, performance products, agricultural products and fine chemicals. As a reliable partner BASF helps its customers in virtually all industries to be more successful. With its high-value products and intelligent solutions, BASF plays an important role in finding answers to global challenges such as climate protection, energy efficiency, nutrition and mobility. BASF has more than 95,000 employees and posted sales of almost €58 billion in 2007. BASF shares are traded on the stock exchanges in Frankfurt (BAS), London (BFA) and Zurich (AN). Further information on BASF is available on the Internet at www.basf.com.

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