BASF Expands Production Capacity in Caojing, China

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Photo: BASF Coatings
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BASF’s coatings division has significantly expanded its polyester and polyurethane resin production capacity at the Caojing plant in Shanghai, China. Originally built in 2015 with an annual capacity of 8,000 metric tons, the plant now produces 18,800 metric tons per year – more than doubling its previous output.

Strategic Investment in Electrocoat Binder Production

To further strengthen its market position, BASF Coatings plans to optimize electrocoat binder production at the Caojing site starting in early 2026. The initiative will strengthen BASF’s support for automotive OEMs and component manufacturers. It will drive growth in the Asia Pacific region over the next decade.

“The increased resin production and upcoming expansion of binder capacities will improve our supply reliability and help us meet the rising demand for automotive OEM coatings in the region,” said Patrick Zhao, Senior Vice President of Global Automotive OEM Coatings at BASF. “This investment reflects our commitment to local production and our agility in responding to customer needs,” Zhao added.

A Highly Automated, Sustainable Facility

The Caojing plant is located in the Shanghai Chemical Industry Park (SCIP). It supplies various raw materials for automotive coatings, including acrylics, polyester, polyurethane, e-coat binder, and intermediate grinding resin. The facility operates with high levels of automation and runs entirely on renewable energy, reinforcing BASF’s focus on sustainability.

A Decade of Innovation and Collaboration

This year marks the tenth anniversary of the Caojing resin plant’s successful operations. Reflecting on this milestone, Jinhua Hou, Deputy Director of the Shanghai Chemical Industry Park Administrative Committee commented, “Over the past decade, the Caojing plant has set industry benchmarks for safety, innovation, and sustainability. The Shanghai Chemical Industry Park remains committed to providing high-quality infrastructure, reliable energy supply, and comprehensive support to valued partners like BASF”.

According to the press release, this expansion and ongoing investment in production optimization strengthen BASF Coatings’ market position. The company is well-equipped to meet the evolving needs of the automotive coatings industry in the Asia Pacific region.

BASF and Shanghai Chemical Industry Park celebrate the inauguration of the expanded resin plant. The event took place at the BASF Coatings Caojing site.