BASF to invest in new additives plant in Shanghai

German materials firm BASF is investing more than EUR200 million globally to increase its production network for plastic additives. An important step is an investment to build a new plastic additives plant at its Caojing site in Shanghai, China. This world-scale plant, with capacity of 42,000 tonnes/year, will produce antioxidants and associated forms and blends. It is expected to be completed in 2019, with commercial production to start by early 2020.

“Asia, and particularly the Chinese market, offer significant growth opportunities, driven by diverse applications including packaging, construction, consumer goods, automotive and many more,” said Hermann Althoff, Senior Vice President of BASF’s Performance Chemicals unit in Asia Pacific. “The plant will be built to reach high environmental standards and have one of the most efficient production processes. Located within the Caojing complex, it will also benefit from its proximity to our regional application centre in Shanghai that provides technical support to polymer producers and to the converting industry within the region.”

Antioxidants help prevent thermal oxidation reactions when plastics are processed at high temperatures, and light-assisted oxidation when plastics are exposed to UV light. Oxidation can cause loss of impact strength, elongation, surface cracks and discoloration of the material. Almost all polymer materials undergo oxidative degradation reactions at one or all of the manufacturing, processing and end-use stages.

BASF runs a global production network and is the only supplier of plastic additives having production sites in Asia, Europe, North America and the Middle East.