BASF India Ltd., a subsidiary of BASF SE, is establishing a chemical production site for polyurethane, care chemicals and polymer dispersions for coatings and paper in Gujarat, India, at the Dahej Petroleum, Chemicals and Petrochemicals Investment Region (PCPIR). 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.
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. The Gujarat site was chosen based on proximity to raw materials and customers. The start of production is planned for 2014. The project will be financed by BASF India Ltd. through internal accruals and loans, and it is investing nearly €150 million in the project. At full capacity, the site will employ more than 250 people.
The care chemicals facility at the new Dahej site will produce surfactants largely for home and personal care. These surfactants will also add value to formulation technology applications including agrochemicals, textiles and emulsion polymerization. With BASF’s global growth strategy for its care chemicals business, the Dahej site adds to BASF’s production footprint in one of the fastest growing emerging markets.
“With its robust local industries, India is set to become a pillar of growth in Asia Pacific. The country’s changing demographic profile and the resulting need for improved quality of life are driving increasing market demand. 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,” said Martin Brudermueller, PhD, vice chairman of the board of directors of BASF SE, responsible for Asia-Pacific, in a company press release. “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, BASF India Ltd.
With shared infrastructure and state-of-the-art production systems, the site will also provide resource efficient BASF technologies for the conservation of energy and water. The site’s advanced design takes advantage of the latest technologies from BASF facilities around the world and ensures safe and responsible operations.