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August 09, 2016 02:00 AM

Bostik boosts production abroad

Chris Sweeney
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    A group of dignitaries cut the ribbon the christen Bostik's expansion in Seremban, Malaysia, which will double annual production.

    COLOMBES, France—Bostik S.A. is expanding in multiple locations to support the construction market.

    The firm, which serves as the adhesives unit for Arkema S.A., is adding production space in Seremban, Malaysia, and opened a new plant in Helsingborg, Sweden, both in response to projected demand for its cementitious products based on its polymer modified binder technology.

    Bostik said it uses styrene acrylic-based polymers and EVA-based polymers in Malaysia. Jeffrey Merkt, senior vice president of the Asian operation, said in an email the Seremban facility will double annual production to 56,000 metric tons, adding additional high speed production and packaging equipment and an additional warehouse.

    The addition created 13 jobs, bringing total employment in Malaysia to about 130, Merkt said. Financial details were not disclosed for either expansion. The expansion occurs two years after Bostik opened its second Malaysian manufacturing plant in Johor Bahru to serve the southern Malaysia and Singapore markets.

    “The expansion in Malaysia is fully in line with our growth strategy,” Merkt said. “Innovation through our lead technology platforms and growth in emerging markets are two of our main strategic pillars and are perfectly illustrated with the expansion of the Seremban facilities.”

    In Sweden, the firm opened the new facility on July 6 with a celebration featuring company executives and other officials. The plant will serve the growing market demand in Northern Europe and the Baltic region.

    Bostik said the facility includes state-of-the-art equipment and comes on the heels of other plant openings in the U.S., Mexico and the Philippines. Helsingborg will produce tile adhesives, mortars and flooring products, including Bostik's 1055 Fiber Maxi floor screed.

    “We are delighted to expand our manufacturing presence in Europe and enhance our ability to serve construction customers in these high growth markets,” Roland Albers, Bostik senior vice president of EMEA, said in a statement. “International expansion in both established and emerging regions remains one of the central elements of our growth strategy, and we will continue to invest in new facilities to ensure we effectively meet customer needs.”

    Merkt said emerging regions will play a central role in Bostik's growth strategy. The firm's target is to have 30 percent of its global sales coming from emerging regions by 2020. The executive added that only 12 percent of Bostik's sales came from emerging regions in 2009.

    “Growth in emerging regions is also one of the pillars of Bostik's growth strategy and is critical to us meeting our objectives,” the executive added. “Asia will obviously play a central part in this alongside development in markets such as India, Eastern Europe and Latin America.”

    Bostik sees optimistic growth in Malaysia, Merkt said. The firm has had a presence there since 1994 and sees growth for polymer modified binder-based products and finishing applications in the building and construction sector averaging about 2-4 percent per year. He added the firm expects the market to shift even further in the coming years with demand for products such as ceramic tile adhesives growing as contractors and other end users see the benefits of those kinds of solutions.

    Seremban primarily will serve the Malaysia region. However, Merkt said it also will play a role in the firm's development in Southeast Asia.

    “We opened a second Malaysian plant in Johor Bahru two years ago that serves Southern Malaysia and Singapore,” he said. “So with both sites, we're able to offer our customers the smartest solutions and the highest levels of quality and service.”

    Bostik is a global adhesives manufacturer operating in the industrial manufacturing, construction and consumer markets. Its products include hot melt pressure sensitive adhesives, made using synthetic rubbers; elastic bonding adhesives made with modified urethane technology; and polymer modified compounds like its cementitious construction products, including ceramic tile adhesives, tile grouts, floor leveling compounds and wall finishing products.

    The company employs about 4,800 in more than 50 countries, serving the global industrial manufacturing, construction and consumer markets with its adhesives technologies.

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