German chemicals company BASF broke ground for two new plants in Pudong, near Shanghai in China on March 20. One plant will manufacture specialty chemicals for leather tanning whilst the other will produce polyacrylate polymers. The two facilities, which will be located next to BASF’s existing facilities for polyacrylate polymers and leather chemicals in Pudong, are expected to be completed in the first quarter of 2008. Investment details were not disclosed.

The plant for specialty chemicals for leather tanning will have a minimum annual capacity of 12,000 metric tons of products in liquid or powder form and will produce the company’s Basyntan, Relugan and Tamol chemicals.

“The chemical market in Asia Pacific is the world’s largest and is expected to grow 4% to 4.5% annually through 2015. Our new manufacturing facilities in Shanghai give us an excellent competitive edge to participate in the rapid growth of the chemical industry in the region,” said Dr Wolfgang Hapke, president of Market and Business Development, BASF Asia Pacific. “We are now moving even closer to our goal of achieving 20% of group sales in the chemicals businesses in Asia Pacific by 2010, with 70% coming from local production.”