With the growing demand for automotive coatings in China, BASF Shanghai Coatings Co. Ltd has announced its plan to set up a new, world-scale automotive coatings plant at the company’s existing site at the Shanghai Chemical Industry Park in Caojing, Shanghai, China. The new plant will see an investment of around 140 million Euros and is expected to start operation in the fourth quarter of 2017.
The existing automotive coatings plant had begun production in 2014. BASF Shanghai Coatings Co. is a joint venture between BASF and Shanghai Huayi Fine Chemical Co. Ltd.
Making the announcement, Dr. Stephan Kothrade, President and Chairman Greater China, BASF said, “With the expansion, we will continue to invest in local production with the aim to get closer to China’s automotive industry. As the leading chemical supplier to the 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.”
Sharing his insights on the current market scenario, Dr. Markus Kamieth, President, Coatings Solutions, BASF 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.”
Peter Fischer, Senior Vice President, Coatings Solutions Asia Pacific, BASF said,“We have been investing in parallel with the growth of the automotive industry, strengthening our presence where our customers are located. Further investment into China reflects our strong commitment to our customers in order to provide faster and more efficient solutions that support their business growth.”
In addition to this new plant, BASF operates a production facility for resins and electrocoating at the same location. The close proximity of these plants allows for more synergies and efficiency. All plants are designed in a highly energy-efficient and sustainable manner, offering the potential for future expansion and the flexibility to adapt to new production requirements in the years ahead.