Chemicals group BASF on March 4 unveiled its expanded production facility for dispersions in Durban, which strengthens the company’s ability to supply customers with high-quality dispersions used in architectural coatings, construction materials and the paper industry.

The significant capacity increase, brought about through a new reactor, enables BASF to support existing customers more reliably and effectively grow its customer base.

BASF South Africa MD Wojciech Kulma comments that the expansion is an important step forward to strengthen local industrial capacity, enable advanced technology transfer and support the development of more environment-friendly paints and coatings.

“These solutions are increasingly essential for sustainable construction and development of infrastructure development across the continent,” he says.

Chemical producers are increasingly navigating challenges globally, including rising energy costs, tightening regulatory requirements, stringent sustainability expectations and intense international competition. In South Africa, these pressures are further exacerbated by heavily-subsidised imports, which make it more difficult for local manufacturers to compete.

Kulma explains that, as a result, some companies and, in some cases, entire manufacturing sites, have been forced to close. “These developments have real consequences. They affect supply chains, threaten critical skills and constrain job creation, impacting not only the chemicals and construction industries but the broader economy.

Meanwhile, the upgrades to the plant included a modern application laboratory for research and development (R&D), with the facility enhancing BASF’s local technical service capabilities and collaboration with customers to develop new formulas for their specific requirements.

The BASF facility in Durban supplies customers across Africa and is one of six dispersion production locations within BASF’s Europe, Middle East and Africa (EMEA) network.

The Durban site is BASF’s first and only greenfield investment in Africa since 2012 and marks the only multinational-owned dispersions plant in South Africa. This highlights the site’s strategic importance to the region’s industrial future.

BASF Durban dispersions plant manager Ruveshen Reddy says BASF’s investment in Durban has increased supply reliability and the site’s ability to deliver consistent excellent product quality.

He adds that BASF celebrates 60 years of operating in South Africa this year, with the company remaining the only multinational that operates a dedicated dispersions production facility in the country.

BASF dispersions Europe senior VP Dr Jörg Niebergall notes that BASF’s investment to upgrade the Durban plant underscores the group’s strong commitment to the dynamic market that is Africa.

“Together with the recent capacity expansion in Dilovasi, Türkiye, and the modernisation of the Ludwigshafen, Germany plant, we are strengthening our position as a leading supplier of high-quality dispersions across EMEA enhancing our capability to support our customers’ growth and innovations,” he states.

The Durban upgrades enable increased volume and quality of production, support the rising demand for water-based dispersions and ensure the facility continues to operate at the highest safety and production excellence standards, affirms BASF EMEA business management polymer dispersions for EMEA VP Dr Robert Heger. 

He mentions that BASF is focused on being the preferred chemical partner enabling green transformation for customers.

Reddy adds that the investment in the Durban facility also enables greater flexibility in the production setup, with the new reactor being equipped with a unique specialised process control system that is designed to ensure the highest level of process safety beyond traditional systems.

SECTOR ROADMAP

“BASF remains committed to strengthening local manufacturing and unlocking the full potential of the South African chemical sector,” Kulma states, urging government to enact lasting solutions to port congestion and ensure a reliable railway network and logistics ecosystem that supports regional integration.

In fact, BASF is actively supporting the Chemical and Allied Industries’ Association (CAIA) in developing a comprehensive roadmap for the industry. The roadmap will be forward-looking, collaborative and aligned with national economic priorities.

BASF and CAIA aim to identify priority segments and growth opportunities across the chemical value chain; address structural challenges including competitiveness, logistics, energy reliability and skills development; promote investment in sustainable technologies that support South Africa’s climate and development goals; develop joint initiatives that strengthen industrial resilience and support local content; and work with government and social partners to create an enabling and predictable environment for growth.

“I believe this roadmap will help stabilise and grow the sector, secure jobs, strengthen industrial capability and ensure that South Africa’s chemical industry remains a vital contributor to the economy and to the continent’s long-term development,” Kulma concludes.