 "BASF expands performance materials operation in China to better serve Asia Pacific region")
BASF has undertaken three key capacity expansion projects for performance materials at its Pudong site in Shanghai – Ultramid (polyamide, PA), Ultradur (polybutylene terephthalate, PBT), Elastollan thermoplastics polyurethane elastomers (TPU), and Technical Center and capacity expansion of Cellasto (microcellular polyurethane components).
“More than 60% of China’s people will live in cities by 2020. Supporting an environmentally-friendly path for urbanisation presents a huge opportunity for chemistry as an enabler for sustainable innovations in areas ranging from industrial manufacturing to construction, transportation and consumer goods,” said Albert Heuser, President, Greater China and Functions Asia Pacific, BASF.
“As the leading producer of polyamide, PBT, TPU and Cellasto, and preferred business partner for our customers, we continuously strengthen our position in key markets. With our technical and engineering competence, we help our customers differentiate in their markets and gain a competitive advantage. We put a strong emphasis on new market and product development, and these capacity expansions will support this future growth,” said Raimar Jahn, President, Performance Materials, BASF.
BASF estimates the Asia Pacific market for engineering plastics will grow on average by about 7% per year. This growth is driven by the increasing usage of engineering plastics in various segments, including transportation, construction, high speed railway, as well as the electrical and electronics industry. Ultramid and Ultradur are used in automotive parts and innovative applications include seat structures, oil sump modules, sensors, engine mounts, connectors and highly integrated laser-structured electronic devices.
Additionally, according to China’s national New Urbanization Plan (2014-2020), with additional 100 million people living in cities by 2020, the percentage of more energy-efficient and environmentally-friendly buildings among newly constructed buildings in China will rise to 50% from 2% today. BASF recently introduced co-extrudable Ultradur to reinforce thermally insulated PVC window profiles, an important contributor to building energy efficiency.
The compounding plant’s total capacity for Ultramid and Ultradur compounds has doubled from currently 45,000 to more than 1,00,000 metric tonnes per year - making it BASF’s biggest engineering plastics compounding facility in Asia Pacific. The expansion, which is operational more than six months ahead of schedule, also includes a compounding line for specialty grades that enables BASF to tap the burgeoning market potential for specialty applications. With this project and the new compounding plant in Yesan, Chung Nam Province, Korea, which is expected to begin operations from the end of 2015, BASF’s overall compounding capacities in Asia will increase from the current 130,000 to a total of 225,000 metric tons.
Elastollan TPU is a versatile material that offers the highest innovation potential. It can be processed with different methods, including extrusion and injection moulding as well as blow molding. BASF has now completed a significant capacity expansion at its Shanghai-based Elastollan plant, which was established in 2007. Elastollan TPU has a long history of success in China. The expansion of capacity for TPU in China will support growth of the rapidly growing market for textile, footwear, transportation, wire and cable sheathing and other industrial applications.
In Asia Pacific, BASF will strengthen the technical leadership of Cellasto, the customised solution for damping and reduction of the noise, vibration and harshness (NVH) level of vehicles. The new investment project includes the expansion of the Cellasto Asia Pacific Technical Centre, the establishment of three new production lines, and the technical improvement of existing facilities. The production capacity will be doubled after the project completion in 2015.
“More than 60% of China’s people will live in cities by 2020. Supporting an environmentally-friendly path for urbanisation presents a huge opportunity for chemistry as an enabler for sustainable innovations in areas ranging from industrial manufacturing to construction, transportation and consumer goods,” said Albert Heuser, President, Greater China and Functions Asia Pacific, BASF.
“As the leading producer of polyamide, PBT, TPU and Cellasto, and preferred business partner for our customers, we continuously strengthen our position in key markets. With our technical and engineering competence, we help our customers differentiate in their markets and gain a competitive advantage. We put a strong emphasis on new market and product development, and these capacity expansions will support this future growth,” said Raimar Jahn, President, Performance Materials, BASF.
BASF estimates the Asia Pacific market for engineering plastics will grow on average by about 7% per year. This growth is driven by the increasing usage of engineering plastics in various segments, including transportation, construction, high speed railway, as well as the electrical and electronics industry. Ultramid and Ultradur are used in automotive parts and innovative applications include seat structures, oil sump modules, sensors, engine mounts, connectors and highly integrated laser-structured electronic devices.
Additionally, according to China’s national New Urbanization Plan (2014-2020), with additional 100 million people living in cities by 2020, the percentage of more energy-efficient and environmentally-friendly buildings among newly constructed buildings in China will rise to 50% from 2% today. BASF recently introduced co-extrudable Ultradur to reinforce thermally insulated PVC window profiles, an important contributor to building energy efficiency.
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The compounding plant’s total capacity for Ultramid and Ultradur compounds has doubled from currently 45,000 to more than 1,00,000 metric tonnes per year - making it BASF’s biggest engineering plastics compounding facility in Asia Pacific. The expansion, which is operational more than six months ahead of schedule, also includes a compounding line for specialty grades that enables BASF to tap the burgeoning market potential for specialty applications. With this project and the new compounding plant in Yesan, Chung Nam Province, Korea, which is expected to begin operations from the end of 2015, BASF’s overall compounding capacities in Asia will increase from the current 130,000 to a total of 225,000 metric tons.
Elastollan TPU is a versatile material that offers the highest innovation potential. It can be processed with different methods, including extrusion and injection moulding as well as blow molding. BASF has now completed a significant capacity expansion at its Shanghai-based Elastollan plant, which was established in 2007. Elastollan TPU has a long history of success in China. The expansion of capacity for TPU in China will support growth of the rapidly growing market for textile, footwear, transportation, wire and cable sheathing and other industrial applications.
In Asia Pacific, BASF will strengthen the technical leadership of Cellasto, the customised solution for damping and reduction of the noise, vibration and harshness (NVH) level of vehicles. The new investment project includes the expansion of the Cellasto Asia Pacific Technical Centre, the establishment of three new production lines, and the technical improvement of existing facilities. The production capacity will be doubled after the project completion in 2015.