BASF Shanghai Coatings starts building Shanghai automotive coatings plant


BASF Shanghai Coatings has started construction on an automotive coatings plant at its Shanghai Chemical Industry Park in Caojing, China.

BASF will invest around €140m in the new plant, which is expected to become operational in the fourth quarter of 2017.

As part of the latest investment of the joint venture between BASF and Shanghai Huayi Fine Chemical, the new facility is an expansion of the automotive coatings plant that started production in 2014.

"With the expansion, we continue to invest in local production to get even closer to China's automotive industry."

BASF Greater China chairman and president Dr Stephan Kothrade said: "With the expansion, we continue to invest in local production to get even closer to China's automotive industry.

"BASF will take an active role in developing this rapidly growing business, based on our local production network, innovative power and market knowledge."

BASF coatings solutions Dr Markus Kamieth said: "Our automotive OEM customers in China are increasingly looking for innovative, eco-efficient coatings solutions to drive sustainability in their processes. Adding world-class manufacturing and R&D capabilities in the country is our contribution to the rapidly evolving expectations of the automotive industry.

"This new investment in China is another example of our ongoing growth strategy in this region and in our automotive coatings business."

As well as the new facility, BASF operates a production facility for resins and electrocoat at the same site.

The proximity of these plants is expected to lead to more synergies and efficiency.