The company will build a new compounding plant at its existing Pudong site in Shanghai, China. Construction of the new facility will start in the first quarter 2005. The plant will have an annual capacity of about 45,000 tonnes. It is scheduled to come on stream by end of 2006.

In addition, BASF is expanding its compounding facility in Pasir Gudang, Malaysia. The expansion from 30,000 metric tons to about 45,000 tonnes annual production capacity will be completed by the second quarter of 2005. Together with the plant in Pudong, the total investment will range in the double-digit million Euro area. Both plants produce Ultramid (polyamide PA) and Ultradur (polybutylene perephthalate PBT) compounds.

In the next 10 years, the Asia Pacific market for engineering plastics is expected to grow on average by about 8 per cent per year. Expanding the engineering plastics business in Asia is another step towards BASF’s goal to generate 20 per cent of sales and earnings in its chemical activities in Asia Pacific and increase the share of local production to 70 per cent by 2010.

Raw materials for the plants in Pudong, Shanghai, and Pasir Gudang, Malaysia, will be partially supplied from BASF´s 50-50 joint venture with Toray in Kuantan, Malaysia. The joint venture is designed for an annual production of 60,000 tonnes polybutylene terephthalate (PBT) base resin. Construction work is on schedule and the plant is expected to start commercial production in the first quarter of 2006.

After the two investments in Pudong and Pasir Gudang have been completed, BASF´s compounding capacity for engineering plastics in the Asian region will exceed 100,000 tonnes per year.

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