BASF opens first plant for tile adhesives in China

BASF today (October 22, 2007) celebrated the opening of its first plant for PCI tile adhesives in the southern Chinese city of Foshan, which will serve the local construction chemicals sector
with leading tiling technologies and solutions.

With an annual production capacity of more than 50,000 metric tons, this facility will turn out a broad product range under the PCI brand, including tile adhesives, leveling products, tile
grouts, waterproofing materials, primer and silicone sealants.

“Setting up the PCI plant is part of BASF’s strategy to continually strengthen its commitment in China, which is currently the world’s largest market for tiling products, with enormous business
potential and opportunities yet untapped,” said Dr. Martin Brudermüller, Member of the Board of Executive Directors, BASF Aktiengesellschaft, responsible for Asia Pacific. “With our entry
into the Chinese tile adhesive market, we will combine BASF’s latest technologies with the ancient ceramics knowledge of Foshan to broaden our capabilities in serving the country’s construction
and other sectors.”

Located in Foshan, the country’s largest ceramics production base, the PCI plant will help establish direct links between BASF and local customers – including tile producers, contractors,
craftsmen, distributors and developers. They will also benefit from a broad portfolio of technical support, advisory services, product innovations and processes made available to them.

“With this production facility in Foshan, PCI is not only broadening BASF’s product portfolio, but also maintaining our leading position and growth momentum in China and Asia,” said Dr. Boris
Gorella, Group Vice President, BASF Construction Chemicals Asia Pacific. “Consumption of locally-made tiles in China rose to approximately two billion square meters in 2006.”

PCI is based in Augsburg, Germany, and was integrated into BASF in 2006. PCI is the leader in the European tile adhesive market for more than 50 years.

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