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BASF Plans 4th System House in China

Wednesday, September 29, 2010

BASF, which is already building its third System House in China, has announced plans to build a fourth, giving the world’s largest polyurethane supplier a service network in all geographical corners of China.

BASF said Monday (Sept. 27) that it would “further strengthen its global service and production network with a new System House in Tianjin,” Northern China’s largest manufacturing base and trading center, with more than 12 million residents.

A Memorandum of Understanding on the project was signed in Ludwigshafen, Germany, during a visit of a delegation led by Wang Zhiping, Vice Mayor of Tianjin Municipal People’s Government. The MoU states the parties' intention to support the development of a polyurethanes System House in Tianjin.
 
‘Above-Average Growth’

"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," said Wayne T. Smith, president of BASF’s polyurethanes division. “We expect the PU market in China to continue to grow at above-average growth rates.

“The new Tianjin investment is evidence of our strong commitment to the China market by providing top-level technical expertise to 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 include local production as well as a sales and technical service center to offer customized products and 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, the new project will complete a “state-of-the-art, all-inclusive service network extending to all geographical corners of China,” BASF said.
 
‘World-Class’ PU Production

“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.”
 
The infrastructure and logistics network of the Tianjin Economic-Technological Development Area (TEDA) makes it “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,” said Maas-Brunner. “BASF has centrally positioned itself to promote innovative polyurethane solutions that will enhance peoples’ living standards and quality of life.”