BASF plans to build a mobile emissions catalysts production facility in Środa Śląska, a Special Economic Zone near Wrocław, Poland, the company said on Tuesday.
Construction of the new 40,000 square meter facility BASFs largest in Europe will begin before the end of 2012, company officials said. The plant will start production in the first quarter of 2014.
Additional expansion will follow, raising the total investment volume for the project to approximately 150 million.
Once all 10 planned light duty and heavy duty production lines are operating at full capacity by 2016, BASF expects to employ more than 400 people at the new site.
The planned implementation of Euro 6 light duty and Euro VI heavy duty emissions regulations in Europe will drive an increased demand for advanced emissions control systems," said Rui Goerck, senior vice president for mobile emissions catalysts at BASF.
"BASF is more than doubling its production capacity in Europe to keep pace with this demand and to continue to meet our customers needs."
Among the advanced technologies that will be produced in Poland are selective catalytic reduction (SCR) systems and cutting-edge SCR on filter solutions, according to BASF officials.
In addition, the plant will house a regional sample laboratory and a production line for BASFs Premair-branded ozone destruction catalysts for automotive applications.
Due to its central position in Europe and its positive economic development, Poland is an attractive location for BASF to invest," said Dr. Joachim Meyer, head of BASF's central Europe business center.
"The new facility strengthens our position in the Polish market as a supplier of innovative solutions, he added.
In parallel with the new plant, BASF said it is also modernizing and expanding its emissions catalyst production operation in Nienburg, Germany.
The new plant in Poland will provide geographic diversity for our manufacturing operations and a strong complement to our existing production hub in Nienburg," said Xavier Susterac, vice president for the company's European mobile emissions catalysts business.
"The combination of the two facilities in Europe will allow us to effectively manage our growth, optimize our production model, and meet the needs of the market in the most efficient way possible."