BASF To Build Its First Wholly Owned Plant In China

Germany-based BASF AG is investing in a tetrahydrofuran (THF)/polyTHF® plant in China, scheduled
for completion in the fourth quarter of 2004. The facility, BASFs first wholly owned project in
China, is to be built in the Shanghai Chemical Industrial Park, Caojing/Shanghai.BASF intends to
utilize newly developed proprietary technology to produce THF, which subsequently will be converted
into polyTHF a component used in spandex and thermoplastic polyurethane manufacturing, among other
uses. The company hopes to become the preferred supplier of raw materials for spandex in China and
has launched a Chinese brand name for its polyTHF Bao Li Fu which means enrich your fabric. By
2010, we aim to generate 20 percent of BASFs sales and earnings in the chemical business in Asia
Pacific with 70 percent of those coming from local production, said Andreas Kreimeyer, member of
BASFs Board of Executive Directors.

October 2003