BASF to build polyurethane factory in Shanghai

BASF will expand its polyurethane business in Asia and invest in a new polyurethane specialty chemical plant in Pudong. This factory is mainly tailored for Chinese customers and was first put into production in 2007. The project has been approved by the Shanghai Municipal Government and is expected to start next year. The project includes a comprehensive polyurethane product building, a technical center, and a thermoplastic polyurethane factory. The entire plant will be affiliated with BASF Polyurethane Specialty Chemicals China. Since each product is manufactured in the same area, the cost will be controlled. Both MDI and TDI required by Pudong are produced in Caojing and are expected to be put into operation by BASF and its partners in 2006. The president of BASF's polyurethane business said that the basic raw materials will be produced locally and the finished products will use separate packaging. BASF already has several factories in China, BASF has 27 plants worldwide and 5 in Asia. It is expected that in the next ten years, China's polyurethane market will grow by more than 10% annually and become the largest market in the world in 2015. At the same time, product innovation will also promote market growth. So BASF will also establish a R&D center at the same time. BASF is the world's leading supplier of polyurethane specialty chemicals.

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