OREANDA-NEWS. April 27, 2011. BASF SE, the world's largest chemical company, kicked off the construction of a new chemical plant in north China's harbor municipality of Tianjin, said an official with the company.

With an investment of 85 million yuan (about USD13 million), the Tianjin project is part of BASF SE's development strategy for China, said Dr. Melanie Maas-Brunner, Senior Vice President of Polyurethanes in Asia Pacific.

The new plant, located in the Tianjin Economic-Technological Development Area, covers 3.4 hectares. It is expected to open by the end of 2012.

The Tianjin project will include a center for sales and technology services in addition to a space for manufacturing an organic compound used in the production of polyurethane foams.

China has become world's largest polyurethane market. It is expected that the demand for polyurethane in China will continue to grow in the coming decade, according to Dr. Maas-Brunner.

"Tianjin is at the heart of the boom and this strategically located new plant is clear proof of our commitment to the Chinese market," she said.

It further boosts our capacity to provide sustainable and energy efficient polyurethane solutions to support and serve rapidly growing sectors, including the construction and automotive industries and emerging markets for renewable energy like wind and solar energy, she added.

BASF SE also started building a chemical plant in southwest China's Chongqing Municipality.

BASF is the leading supplier of polyurethane solutions for systems, specialties and basic products. It has a global network of 38 polyurethane system houses and a comprehensive product and service portfolio.