Kazakhstan 2017 | INDUSTRY | B2B

Construction firms in Kazakhstan are settling in for the long haul, even if recent fluctuations in the market have given them pause.

Igor Girnyk
Country Manager
Saule Baitzhaunova
Managing Director
BASF Central Asia

How do you contribute to the development of the country?

Igor Girnyk The decision to establish a representative office in Astana was based on the idea of expanding our presence in the region, being closer to our local customers, and increasing our level of support to them. It is a significant advantage for the company to be present in the local market, to match our products and technologies with customers' needs. We have been working in Kazakhstan for many years but the decision to open an office here five years ago was timely and right. We actively promote our technical service and programs for oil and gas technologies. Doing this at a distance was difficult, so our current local presence allows us to broaden our participation in the oil and gas sector as well as to enter the construction market here. Astana is a growing and developing city. The upcoming Expo 2017 will be dedicated to new energy and innovations, and we will participate with our products and solutions for the construction industry. We also pay great attention to mining and copper production. The Dow Water & Process Solutions business unit offers a wide product portfolio of services for the mining industry.

Saule Baitzhaunova BASF has existed for 152 years, 25 of which have been in the Central Asia market. Subsequently, we can see that the company is a long-runner and has vast knowledge in different sectors. BASF will support and share its knowledge in the country's efforts to diversify. We will expand our production and increase our range of materials. Our main contribution to Kazakhstan will be to bring all these technologies together here. We are the biggest chemical company and can supply chemicals as well as raw materials for other producers too, which in turn can also help the country. We can be main players in the production chain for other producers as well. Our materials are used in agriculture, mining, oil and gas, automotive, nutrition, animal feed, farms, and cosmetics. Around 90% of cars in the world have a piece of BASF in them. We are in televisions, mattresses, toothpaste, perfumes, as well as smartphones, where our materials help reduce their weight and make them more sensitive to touch. We are not only globally important, but also specifically in Kazakhstan.

What are your expansion plans?

IG In the last four years we have increased our share in all the industries our products and solutions are present in. In addition, we found new opportunities in other business directions, such as construction. Nowadays, this sector is fast developing in Kazakhstan, so we supply our products for building and construction as well as for coating materials, which are used for the production of paints. A couple of years ago we investigated and observed the market situation and dynamics. Now we feel confident here; we know the local aspects and offer a wider variety of products than when we got started in the country. As a global company with a high level of technical expertise, we offer our knowledge and technologies to Kazakhstani producers. We are very strong in the oil and gas area: we supply our water treatment technologies to the local market, and our products are very well known in the mining industry. Moreover, the full list of products and solutions we offer to local businesses is much wider. We are planning to develop more in the areas where we are already strong and are always looking for new opportunities, customers, and applications for Dow technologies in the region.

SB It will be a challenging year, but for now we are prepared because our business is diversified. If the construction sector goes down we will increase our industrial business, and with this we will remain stable. Nonetheless, hard times will not last forever and there are other opportunities for growth on the market. Therefore, owing to our experience, valuable employees, and the support of BASF's global team, we are ready for whatever challenges and opportunities may come this year. Lastly, BASF has a commitment to sustainable development. The principle “We never compromise on safety” is anchored in our “We Create Chemistry” strategy. Together we are committed to economic competitiveness, sustainable development, and our responsible care philosophy, which permeates everything we do.