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Friday, 29 May 2020
Markets & companies, Coatings market

BASF breaks ground on new automotive coatings plant in Shanghai

Friday, 17 June 2016

BASF Shanghai Coatings Co., Ltd. has broken ground on a new, world-scale automotive coatings plant at the company’s existing site at the Shanghai Chemical Industry Park in Caojing, Shanghai, China.

Groundbreaking ceremony of BASF’s automotive coatings plant phase II in Shanghai. Source: BASF

Groundbreaking ceremony of BASF’s automotive coatings plant phase II in Shanghai. Source: BASF

The new plant represents an investment of around EUR140 million and is expected to start operation in the fourth quarter of 2017.

Expansion of the automotive coatings plant

As the latest investment of the joint venture between BASF and Shanghai Huayi Fine Chemical Co., Ltd, the new plant is an expansion of the automotive coatings plant, which began production in 2014 at the same site.

"With the expansion, we continue to invest in local production to get even closer to China’s automotive industry,” said Dr. Stephan Kothrade, President and Chairman Greater China, BASF. "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.”

Adding world-class manufacturing

"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,” said Dr. Markus Kamieth, President, Coatings Solutions, BASF. "This new investment in China is another example of our ongoing growth strategy in this region and in our automotive coatings business.”

"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,” said Peter Fischer, Senior Vice President, Coatings Solutions Asia Pacific, BASF.

Production facility for resins at the same location

In addition to this new plant, BASF also operates a production facility for resins and electrocoat 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.

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