BASF Building New Site in India Due to Robust Local Industries

Facilities will produce polyurethanes, polymer dispersions and care chemicals

BASF (IW 1000/34) India td. announced on April 11 that it will invest $197 million to set up a new chemical production site at the Dahej Petroleum, Chemicals and Petrochemicals Investment Region, located on the west coast of India in Gujarat.

The new site will be an integrated hub for polyurethane manufacturing and will also house production facilities for care chemicals and polymer dispersions for coatings and paper. With this new production site, the company said it aims to ensure local supply for growing markets and industries such as appliances, footwear, automotive, construction, adhesives, architectural coatings, paper and personal care.

"With its robust local industries, India is set to become a pillar of growth in Asia Pacific. The country's changing demographic profile and the resulting need for improved quality of life are driving increasing market demand. With the new manufacturing facility, we will be able to serve our customers better by developing solutions that meet their individual needs as well as strengthen their competitive advantage," said Dr. Martin Brudermueller, vice dhairman of the Board of Directors of BASF SE, responsible for Asia Pacific.

The site will employ more than 250 people at full capacity, primarily in operations.The start of production is planned for 2014.

"The location offers excellent investment conditions and a favorable business environment due to the proximity to raw materials as well as customers. With this new project, we expect to grow our businesses in the important northern and western regions of India," said Prasad Chandran, chairman, BASF India Ltd.

The integrated polyurethane facility will produce Elastollan TPU (Thermoplastic Polyurethane), Cellasto NVH (Noise, Vibration and Harshness) parts and Polyurethane Systems, which is supported by new production facilities for important precursors, comprising Polyetherols and Polyesterols plants as well as an MDI splitter.

The care chemicals facility at the new Dahej site will produce surfactants largely for home and personal care. These surfactants will also add value to formulation technology applications including agrochemicals, textiles and emulsion polymerization.

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