BASF will invest 150 million to set up a new chemical production site at Dahej, 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, the company said.
With this new production site, BASF aims to ensure local supply for growing markets and industries such as appliances, footwear, automotive, construction, adhesives, architectural coatings, paper and personal care, according to the company.
The start of production is planned for 2014. The project will be financed by BASF India Ltd. through internal accruals and loans.
With its robust local industries, India is set to become a pillar of growth in Asia Pacific, said Dr. Martin Brudermueller, vice chairman of the board of directors of BASF, responsible for Asia Pacific.
The countrys changing demographic profile and the resulting need for improved quality of life are driving increasing market demand, he added. 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.
The Dahej site complements the existing manufacturing set-up of BASF in India and will support and contribute to the growth of the Indian chemical industry, said Prasad Chandran, chairman and managing director of BASF India Ltd.
The location offers excellent investment conditions and a favorable business environment due to the proximity to raw materials as well as customers, Mr. Chandran added. With this new project, we expect to grow our businesses in the important northern and western regions of India.
The site will employ more than 250 people at full capacity, primarily in operations. With shared infrastructure and production systems, the site will also provide resource efficient BASF technologies for the conservation of energy and water.
The sites advanced design takes advantage of the latest technologies from BASF facilities around the world and ensures safe and responsible operations, the company says.
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 Dahej site will produce surfactants largely for home and personal care, according to BASF.
These surfactants will also add value to formulation technology applications including agrochemicals, textiles and emulsion polymerisation.
The Dahej site adds to BASFs production footprint in one of the fastest-growing emerging markets, the company says.
The polymer dispersions facility at the site will produce Acronal and Styrofan, key ingredients for architectural coatings, adhesives, and construction, Styronal and Basonal for paper coating and Basoplast for sizing.
The plant will predominantly serve customers located in the northern and western parts of India. BASF currently produces dispersions at an existing plant in Mangalore.