BASF Plans to Construct Plastic Additives Facility in China

BASF plans to build a new plastic additive facility in Shanghai, China

China: BASF SE, a Germany based company engaged in the production & distribution of a wide range of chemicals for applications across various industries, has planned to construct a new plastic additive manufacturing facility at Caojing site in Shanghai, China.

The company revealed that post-completion of the new facility, would lead to 42,000 thousand metric ton annual production capacity of antioxidants & associated forms and blends. The construction of new facility would be accomplished by the end of 2019 and would be operational by 2020. The newly constructed plant would be in Caojing complex, therefore, the proximity of new plastic additive plant to regional application centre of BASF would also be beneficial for the company.

TechSci Research depicts that the plan to construct a new plastic additive manufacturing plant is a part of strategic expansion of BASF. The new plant would strengthen the production as well as the distribution network of the company across the globe, particularly, the facility would aid BASF in catering the demand generated for plastic additive by packaging, construction, consumer goods and automotive sectors of the Asian countries.

According to the recently published report by TechSci Research, “Asia-Pacific Masterbatch Market By Type (White, Black, Color and Additive), By Country (China, India, Indonesia & Others), Competition Forecast and Opportunities, 2011 - 2021”, the Asia-Pacific masterbatch market is projected to grow at a CAGR of over 9.7% during 2016-2021. Growth in the market is anticipated on account of increasing demand from various end user segments, such as packaging, automotive, consumer appliances, electronics, etc. In order to leverage high growth opportunities offered by the region, major companies, such as Ampacet, A. Schulman, and Clariant, are increasing their focus on China and India. With a growing number of plastic processing units in Asia-Pacific region, especially in China and India, the demand for masterbatches has been increasing at a robust pace, and the same trend is anticipated to continue over the next five years as well. Apart from plastic industry, high demand for masterbatches is being witnessed from other industries, such as packaging, construction, automotive and consumer appliances.