BASF Shanghai Coatings to Begin Construction of Automotive Coatings Plant

China: BASF Shanghai Coatings, a Chinese subsidiary of BASF Coatings GmbH, which is involved in the production and marketing of automotive coatings in China has started the construction of a new facility for production of automotive coatings plant. BASF has announced that the total investment for this project would amount to around USD160 million. The new facility, which would be cooperated by the joint venture between BASF and Shanghai Huayi Fine Chemical, is an expansion of the automotive coatings plant which was commissioned in 2014. This coatings production plant would cater the growing demand for innovative and eco-friendly coating solutions in the region. This new facility is in close proximity to the resins and electro-coating solutions production plant controlled by the company, which is expected to lead to more synergies and improved efficiency.

TechSci Research depicts that the expansion of automotive construction facility in China would strengthen the position of the company in the coatings business in the country, which is one of the fastest growing market for paints and coatings across the world. Consequently, the expansion of the coatings production plant would aid the growth of the market for pigments in the country.

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 $ 34 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. Few of the major players operating in global pigments market include BASF, Clariant, Huntsman, Tronox, and Lanxess, among others.