A joint venture between BASF and Shanghai Huayi Chemical Co., Ltd. officially inaugurated a new automotive coatings factory in Shanghai, China that will serve the automotive industry in the country and the Asia Pacific region, the German chemicals firm announced Monday.
An expansion of an existing automotive coatings facility in Shanghai, the firms invested €140 million, or about $164 million, in the new plant located within the Shanghai Chemical Industry Park (SCIP).
“The global automotive market is expected to continue to grow significantly, with China as the biggest driver,” said Dirk Bremm, president of BASF Coatings, in a statement. “The inauguration of this new plant in Shanghai will help us to support the growth of our customers and take an active role in developing the Chinese automotive market.”
BASF noted that the Asia Pacific region made up over half (52%) of global production of light vehicles. The joint venture’s facility will manufacture thinners, primers, and solventborne and waterborne coatings, complimenting production of automotive coatings, resins, and electrocoat goods at its existing plant in the Chinese city.
“Our solutions are researched in labs, simulated and tested in our spray booths and application centers, and finally produced at our new plant. In this way, we combine the scientific research power of our Innovation Campus Asia Pacific in Shanghai with close proximity to our customers,” said Peter Fischer, senior vice president of Coatings Solutions Asia Pacific at BASF, in the firm’s release.