BASF invests €150m in India polyurethane production

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BASF India will invest 10 billion rupees (€147.9m) to set up a new chemical production site at the Dahej petroleum, chemicals and petrochemicals investment region (PCPIR), 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, BASF said in an April 11 news release.

BASF aims to ensure local supply for growing markets and industries such as appliances, footwear, automotive, construction, and adhesives. The start of production is planned for 2014. The project will be financed by BASF India through internal accruals and loans.

“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, managing director, BASF India.

The site will employ more than 250 people at full capacity, primarily in operations.

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, including an MDI (methylene diphenyl diisocyanate) splitter.

The Dahej facility will serve southern Asia and the ASEAN region, according to BASF India.

The company declined to comment on plant capacity.

India’s government has four petroleum, chemicals and petrochemical investment regions: Dahej in Gujarat, Haldia in West Bengal, Paradeep in Orissa and Vishakhapatnam in Andhra Pradesh.

According to global consultancy firm McKinsey, about one-third of the specialty chemicals business worldwide could move to Asia by 2020, accounting for sales of about $350bn (€266.7bn).