Germany's Baerlocher to further expand Seremban plant

Global name: Arne Schulle (left) and Palaniappan. Schulle says the firm had grown to be a global name by adopting technology and market knowledge drawn from more than 190 years of company history.

FOUNDED in 1823, Germany based Baerlocher GmbH has developed from a local producer of sulphuric acid to be one of the world’s leading suppliers of additives for the plastics industry.

The company, which started off in Augsburg and in 1909 moved its headquarters to Unterschleissheim near Munich, now has its presence in more than 50 countries with more than 1,000 employees and production facilities in 15 production sites.

It boasts an impressive production portfolio that includes a broad range of stabilisers and other additives suitable for all polymer and a range of non-polymer applications.

Baerlocher Group of Companies chief executive officer Arne Schulle explains that the company, which has been highly committed to innovation and sustainability, has grown to be a global name by adopting technology and market knowledge drawn from more than 190 years of company history.

“With such experience and having consistently developed leading-edge technologies for sustainable stabiliser systems and innovative metal soap solutions, Baerlocher became a global partner for the industry.”

Global name: Arne Schulle (left) and Palaniappan. Schulle says the firm had grown to be a global name by adopting technology and market knowledge drawn from more than 190 years of company history.

Dr Christian Rosenthal took over ownership of Baerlocher GmbH in 1946 and turned it into a modern company producing new, future-oriented products with a focus on PVC additives and metal soaps.

He brought in new technologies and market knowhow and in less than two decades, Baerlocher GmbH became one of the leading suppliers of additives to the plastics industry.

In 1980 Dr Michael Rosenthal succeeded his father Dr Christian Rosenthal and intensified the international expansion.

Today, the Baerlocher Group of Companies operates 15 production sites in strategic locations including Germany, Italy, United Kingdom, Malaysia, Brazil, Argentina, Peru,

India, United States of America, China, Turkey as well as a worldwide sales network.

Seven years ago, Dr Tobias Rosenthal joined the family business which currently has two Strategic Business Units (SBU) i.e. SBU Polyvinyl Chloride (PVC) and SBU Special Plastic Additives (SPA) to create value for all our customers.

The SBU PVC manufactures all PVC related products such as stabilisers, lubricants, impact modifiers and other additives whereas SBU SPA develops metal soaps for all other polymers such as polyethylene, polypropylene, polystyrene and non-polymers applications for examples rubber & building industry.

Father-and-son team: Dr Michael Rosenthal (left) and his son Dr Tobias Rosenthal, who is the majority shareholder of the group, which is today one of the world’s leading additive suppliers.

New markets

Schulle states that Baerlocher’s customer base ranges from the mid-sized extruding company to the multi-billion global players with world scale production facilities and classical final applications could be pipes, cables, windows, sheets or polymers even the resin producers.

“Furthermore, we extend our reach in new markets such as the grease as well as the hydrophobic market and are continuously expanding our activities in polymer compounding and recycling markets, ” he said.

As part of its expansion plans, Baerlocher picked Malaysia in 1992 to be its hub for the South-East Asian and eventually the Asia Pacific region.

“Baerlocher had a vision for the whole region with regard to a long-term prosperous development in terms of underlying market growth, ” Schulle says, adding that the investment incentives and investor friendly attitude of the local authorities were among the factors why they chose to set up a plant in Taman Tuanku Ja’afar Industrial Estate in Seremban.

He further explains that given its excellent infrastructure of roads and highways, easy accessibilities to major ports and advanced telecommunication systems made Malaysia an even more strategic and a sustainable location.

“In addition, Malaysia is politically stable with the government continuously providing attractive investment incentives to attract foreign investments, ” he says adding thatthe Seremban plant had the “Licensed Manufacturing Warehouse” status which gets the same benefits of with those located in a Free Trade Zone.

Out of an initial investment of around RM18mil, the business has grown over the years with additional investments of around RM175mil.

Last year, Baerlocher Malaysia made another investment of RM43mil for an additional production line for metal stearates, a new warehouse and an office facility.

The new line is to meet higher demand for its products and to prepare for further growth.

The plant, with Malaysian S. Palaniappan as managing director, today has a production capacity of 50,000 tonnes, up five-fold from when it was initially set up.

A major part of its products are exported to Australia, Bangladesh, China, Indonesia, Myanmar, New Zealand, Pakistan, Philippines, South Korea, Sri Lanka, Taiwan, Thailand and Vietnam.

Schulle says Baerlocher also has plans to further expand in Malaysia.

“After our latest expansion, we still have the potential to further expand capacities in Seremban to cover our market needs. This may be likely in two to three years, ” he said adding that in the course of the years, Baerlocher fully consolidated its sales and technical service activities from Singapore into Malaysia.

“But it should not be underestimated that the most important factor was and is to invest into an organisation which makes a difference in the eyes of the customers.

“We can only be successful if our customers see us as their trusted advisor, ” states Schulle, adding that although the bulk of its products at the Seremban plant was for the export market, the company sourced most of its raw material locally, creating spillover effects for other economic activities.

Baerlocher Malaysia, which has just over 100 employees has developed as a centre of competence not only from a production point of view but from a technical serviceand R&D point of view as well as a strategic part of the Baerlocher Group of companies.

“This is not only for the markets we serve but also for other Baerlocher subsidiaries in the greater region. This is how we capitalise on and enlarge our global network.”

Baerlocher (M) Sdn Bhd, is committed to the principles of responsible care by ensuring its products are produced in a sustainable manner and achieved significant milestones with integrated management system’s standards and certifications including ISO 9001 for Quality Management System; ISO 14001 for Environment Management System and Hazard Analysis and Critical Control Point (HACCP) certification on Food Safety as well as recently in obtaining Roundtable Sustainable Palm Oil (RSPO) Supply Chain Certification Standard.

The Baerlocher Group supports all efforts aimed at increasing sustainability in the plastics sector with innovative solutions and state of the art efficiency.

“Baerlocher is committed to both industry and the society and contributes actively to relevant industry associations all over the world such as but not limited to VinylPlus, espa, APAG, ecvm, Plastics Europe, Asean Vinyl Council, Vinyl Council Australia and several associations in China, ” Schulle says and further elaborates that Baerlocher as a global company, is committed to promote “Respect, Integrity and Excellence” wherever they operate.

“Furthermore, we like to point out how important it is for us to have a peaceful coexistence, respect and tolerance towards other cultures.

“Unbiased solidarity with our colleagues from all over the world forms a part of our DNA as a company, ” he says adding that its Malaysian operation was a perfect example for a diverse culture with a common goal and being run by a local management team.