BASF Shanghai Coatings Co has opened a new facility for automotive OEM coatings in the Shanghai Chemical Industry Park in Shanghai. The chemical major has invested around 50 million euros (Rs 404 crore) in expanding production capacity for automotive OEM coatings.

"BASF is the leading partner to the automotive industry in the field of chemistry. This investment underscores our commitment to our customers in the automotive sector and supports the dynamic growth of the Chinese automotive market,” Dr Andreas Kreimeyer, board member of BASF SE and Research.

The plant is equipped with a modern ventilation and exhaust system to ensure a clean environment inside and outside the establishment. In addition, the system is designed so that the materials to be handled in a closed system. "Our facility offers the latest and most environmentally friendly manufacturing processes and technologies," said Peter Fischer, head of the coatings business of BASF in Asia-Pacific. "Our innovative processes and high quality automotive coatings help our clients achieve their efficiency goals and remain competitive."

"We focus our investments on the expected market development and customer demand. We will continue to invest in strengthening our local production capacity in China and Asia to meet the needs of our customers even faster, "said Dr Albert Heuser, president, Greater China and Functions Asia Pacific at BASF.

The new facility for automotive OEM coatings was built directly next to another new factory for resins and electro-deposition paints from BASF, which will start operating in the second half of 2015. The proximity of these two systems and their access to facilities at the BASF site in Caojing and the Shanghai Chemical Industry Park allow more synergies and operating efficiencies.

BASF Shanghai Coatings Co. Ltd. was established more than 17 years of successful existing joint venture between BASF Group and Shanghai Huayi Fine Chemical Co.Ltd.