Polyurethane specialist Elastogran (Lemförde / Germany; www.elastogran.com) and the Kanoo Group (Bahrain; www.kanoogroup.com) have agreed to create a joint venture (Kanoo 51%, Elastogran 49%) under the operational lead of Elastogran, a subsidiary of BASF (Ludwigshafen / Germany; www.basf.com). The jv will acquire the PU business of Multi Chemical, based in Abu Dhabi, from the Al Hamid Group (Abu Dhabi / UAE; www.alhamid-group.com) by end of May 2008. The business employs around 20 people and had a turnover of approximately USD 20m in 2007. Founded in 1995, it is one of the leading system houses in the region.

Following the acquisition, the partners plan to build a new PU system house in Dubai Industrial City with construction commencing in mid-2008 and production beginning in 2010. BASF sees great potential in the construction and insulation markets for applications with PU throughout the Arabian Peninsula market. These include sandwich elements, insulating boards and spray foam, which offer energy-efficient and uncomplicated construction in both the industrial and in private housing sectors.