(Yicai Global) May 22 -- German chemicals giant BASF has begun constructing its largest Asian factory in southern China's Guangdong province to meet rising demand for more sustainable automotive parts and lightweight materials for consumer products.
The USD10 billion engineering plastics and thermoplastic polyurethane project in Zhanjiang is moving forward swiftly and its goal is to meet the strong demand in southern China as well as in Asian markets, Dr. Stephan Kothrade, president functions of BASF's Asia Pacific office, told Yicai Global at Chinaplas trade fair in Guangzhou. The Ludwigshagen-based company has two bigger factories in Germany and Belgium.
Guangdong has good foundations for many industries and that is why BASF chose this location, said Dr. Zheng Daqing, senior vice president of business and market development in the firm's China office.
BASF is also building one of its Creation Centers, which is a research and development hub that invites designers to work with BASF's new materials, in Shanghai. Other such sites will be located in Tokyo and Mumbai.
The Zhanjiang factory will make 60,000 metric tons of engineering plastics per year, boosting the company's annual output in the Asia Pacific region by over one-quarter to 290,000 metric tons.
BASF has expanded its sales and marketing channels in China, targeting business-to-consumer, business-to-business, and e-commerce channels, Zheng said, adding that paints and pesticides are hot-sale products in the firm's online shops.
Editor: Emmi Laine