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BASF To Expand Manufacturing Capacity In China

Germany-based BASF AG has begun construction of a polyacrylate polymer manufacturing plant next to existing manufacturing facilities at its Pudong site near Shanghai. The new plant, one of two to be built at the site, will add a minimum annual capacity of 30,000 metric tons to the company’s polyacrylate polymer manufacturing capabilities.

BASF markets man-made water-soluble polyacrylate polymers under the Sokalan® brand for use in textile, laundry, paper and water-treatment applications.

The second new plant under construction in Pudong will add a minimum capacity of 12,000 metric tons to existing capacity to manufacture specialty chemicals for leather tanning. Construction of the two plants is expected to be completed in the first quarter of 2008. In addition, BASF is building a third new plant at Caojing, also near Shanghai, to manufacture polyisocyanate for use in automotive, industrial and wood paints.

The company said it is building these new plants to better serve its customers in the Asia Pacific region.

“The chemical market in Asia Pacific is the world’s largest and is expected to grow 4 to 4.5 percent annually through 2015,” said Wolfgang Hapke, president, Market and Business Development, BASF Asia Pacific. “We are now moving even closer to our goal of achieving 20 percent of group sales in the chemicals businesses in Asia Pacific by 2010, with 70 percent coming from local production.”

March 20, 2007