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Welcome and editorial of the construction industry newsletter by BASF


Welcome to the new edition of our newsletter!

As we finally leave behind another Dubai summer, which was my 26th, I hope that you had a chance to escape the searing heat and humidity, and that your batteries are recharged as we enter the cooler period of the year, when construction activity traditionally reaches its peak. I say, traditionally, because it has been noticeable that this year even during the holy month of Ramadan and summer, demand for materials has remained strong, especially in the UAE where I am based.

The past 12 months has seen BASF in Dubai post several record sales months, despite often challenging conditions in the local market. At times in late 2017, this stretched our logistics capacity to its limit, but I am now happy to report that our significant investments in our powder manufacturing capabilities have been completed and are fully on stream. Similar investments are underway in our resin production plants which are already improving stock positions. I thank you for your support over this period and apologize to any of you who may have suffered any shortfall in our normally high levels of service.

I should also mention pricing. Since Q3 2017, the oil price rose significantly to be once more threatening the US $ 100.00 per barrel. Although these high points are receding slightly, this had inevitable consequences on raw material costs especially those directly derived from petroleum cracker. In addition, unforeseen occurrences in China contributed to global shortages of the feedstock raw materials for all epoxy resin floorings, grouts and technical mortars. This led to unprecedented price rises in epoxy resins; some greater than 50%.  While we worked extremely hard to absorb as much of these costs as we can, by implementing a series of internal operational programs, we inevitably have had to pass some of the increase onto our customers.

The next 2 -3 years look as though they could rank alongside some of the busiest that I have experienced as preparations for EXPO 2020 accelerate towards their conclusion, and many other iconic projects get underway.

Our teams in the UAE and Oman are well positioned to serve you, our valued customers, with our Master Builders Solutions technologies, ongoing technical support, and growing network of professional distributors.

Julian Andrew Pritchard
General Manager - BASF Construction Chemicals UAE LLC
November 2018

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