BASF to Establish New Polyurethanes System House in China

BASF, the leading supplier of polyurethane (PU) system solutions worldwide, announced today that it will further strengthen its global service and production network with a new System House in Tianjin, the largest modern manufacturing base and trading center in northern China with a population of over 12 million residents. The new site is planned to operate from 2012 on wards .

A Memorandum of Understanding on the project was signed in Ludwigshafen at a visit of a delegation led by Wang Zhiping, the Vice Mayor of Tianjin Municipal People's Government.

The MoU, which states the two parties' intention to support the development of a polyurethanes System House in Tianjin, northern China , was signed by Ni Xiangyu , Administrative Commission of Tianjin Economic-Technological Development Area (Nangang Industrial Zone) and Wayne T. Smith, the president of BASF's polyurethanes division.

"The strategic location of the city is perfectly suited to serve the fast growing North China markets including the thriving centers of Beijing, Shenyang, and Changchun. We expect the PU market in China to continue to grow at above average growth rates," Smith said. "The new Tianjin investment is evidence of our strong commitment to the China market by providing top-level technical expertise to the fast-growing industries like the Automotive, Construction and Appliance industries."

The Tianjin System House will be integrated into BASF's comprehensive worldwide network, which currently includes 38 system houses. It will comprise local production as well as a sales and technical service centre to offer customized products and responsive high-quality service. Combined with the capabilities of the previously announced new System House in Chongqing, along with two current System Houses and Development Centers in Shanghai and Nansha, it creates a complete state-of-the-art, all-inclusive service network extending to all geographical corners of China.

"Our investments in these sites will further bolster BASF's worldwide System House network, all of which are fully supported by world-class production sites for PU basic material, including a TDI and MDI production site in Caojing, Shanghai and our planned MDI plant in Chongqing," Smith added. "The new System House helps make BASF the preferred partner for our customers, giving us yet another dimension of service and support to help our customers overcome numerous industry challenges."

"With an outstanding infrastructure and logistics network, Tianjin Economic-Technological Development Area (TEDA) was intentionally selected as a well-developed hub for reliable local production and supply to our customers," said Dr. Melanie Maas-Brunner, Senior Vice President of Polyurethanes in Asia Pacific. "In turn, BASF engages in the market and technology development in North China, and opens career opportunities with the new activities, which will greatly benefit the local economy."

"We see a strongly growing domestic consumption for PU products in the areas of housing, living, infrastructure and transportation," continued Maas-Brunner. "BASF has centrally positioned itself to promote innovative Polyurethane solutions that will enhance peoples' living standards and quality of life."


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