BASF's Coatings division has significantly expanded its production capabilities at its Caojing plant in Shanghai, China, demonstrating its commitment to meeting the burgeoning demand for automotive coatings in the Asia Pacific region. The company has more than doubled its production capacity for polyester and polyurethane resins, key components in automotive spraycoats, from 8,000 metric tons annually to 18,800 metric tons.

The Caojing plant, situated within the Shanghai Chemical Industry Park (SCIP), has been a cornerstone of BASF's automotive coatings supply chain since its inception in 2015. The facility specializes in the production of a diverse range of coating raw materials, including acrylics, polyester, polyurethane, electrocoat binders, and intermediate grinding resins. The recent capacity increase specifically targets polyester and polyurethane resins, which are essential for achieving the high-quality, durable finishes demanded by automotive original equipment manufacturers (OEMs).

In addition to the resin capacity expansion, BASF has announced plans to further enhance its electrocoat binder production through process optimization at the Caojing site, commencing in early 2026. This initiative will solidify BASF's leading position in the dynamic automotive coatings market, enabling the company to better serve the evolving needs of automotive OEMs and component manufacturers throughout the next decade. Electrocoat binders are critical for providing corrosion protection and adhesion, forming the foundational layer of automotive coating systems.

Patrick Zhao, Senior Vice President, Global Automotive OEM Coatings at BASF, emphasized the strategic importance of this expansion. "The increased production capacity for resins and planned additional capacities for binders will enhance our supply reliability, enabling us to meet the growing demand for automotive OEM coatings in the region. This expansion underscores our commitment to local production and our ability to respond swiftly to customer needs."

The Caojing plant's advanced automation and reliance on 100% renewable energy highlight BASF's commitment to sustainable operations. This year marks the 10th anniversary of the plant's successful operation, a testament to its efficiency and reliability. The Shanghai Chemical Industry Park has played a crucial role in supporting BASF's growth, providing a conducive environment for innovation and development.

Jinhua Hou, Deputy Director of the Shanghai Chemical Industry Park Administrative Committee, stated, "Over the past decade, the Caojing plant has set a benchmark for safe operations, innovation, and sustainability. The Shanghai Chemical Industry Park is committed to providing our valued partners, such as BASF, with a high-quality development environment and comprehensive support, including energy supply and improved utilities."