BASF to Expand Automotive Coatings Production at Shanghai, China
China: BASF Shanghai Coatings Co.,
Ltd. has planned to invest USD156.8 million for the expansion of the automotive
coatings plant in China, which started production in 2014. The new line at
Shanghai Chemical Industry Park in Caojingin in Shanghai, is expected to
commission its operations by the end of 2017. BASF Shanghai Coatings Co., Ltd.
is a joint venture company between BASF and Shanghai Huayi Fine Chemical Co.,
Ltd. BASF also operates a production facility for resins and electrocoat at the
same location. The proximity of the two plants would allow for more synergies
and efficiency. The plants are designed in a energy-efficient and sustainable
manner thus promising to offer the potential for future expansion and the
flexibility to adapt to new production requirements in coming years.
TechSci Research depicts that
the augmentation
of the automotive coatings plant at the Shanghai would strengthen BASF’s local
production network, market knowledge along with its position in the China
automotive industry. Increase in the production capacity of coatings in China is
anticipated to boost the demand for inorganic pigments, which are widely used
to provide various functional properties to coatings such as heat
stabilization, antistatic, flame retardants, anti-block and UV stabilization
etc.
According to a recent report published by TechSci Research, “Global
Pigments Market By Type,
By Application, Competition Forecast and Opportunities, 2011 – 2021”, global pigments market size
is estimated to cross USD34 billion by 2021. Growth in the market is
anticipated on account of continuously increasing demand from major end use
industries, such as paints & coatings, printing inks, construction,
automotive, etc. Global paints & coating industry stood at around USD122.5
billion in 2011, and is anticipated to reach to USD168.5 billion by 2017,
thereby portraying a positive outlook for the global pigments market. Inorganic
pigments dominated the global pigments market in 2015 and is forecast to
maintain its dominance during 2016 – 2021.