Mumbai, India -- BASF India Ltd will invest 10 billion rupees ($194 million) to set up a new chemical production site at the Dahej petroleum, chemicals and petrochemicals investment region (PCPIR), located on the west coast of India in Gujarat.
The new site will be an integrated hub for polyurethane manufacturing and will also house production facilities for care chemicals and polymer dispersions for coatings and paper, BASF said in an 11 April news release.
BASF aims to ensure local supply for growing markets and industries such as appliances, footwear, automotive, construction, and adhesives. The start of production is planned for 2014. The project will be financed by BASF India through internal accruals and loans.
"The Dahej site complements the existing manufacturing set-up of BASF in India and will support and contribute to the growth of the Indian chemical industry," said Prasad Chandran, managing director, BASF India.
"The location offers excellent investment conditions and a favourable business environment due to the proximity to raw materials as well as customers," he added.
The site will employ more than 250 people at full capacity, primarily in operations.
The integrated polyurethane facility will produce Elastollan TPU (thermoplastic polyurethane), Cellasto NVH (noise, vibration and harshness) parts and polyurethane systems, which is supported by new production facilities for important precursors, including an MDI (methylene diphenyl diisocyanate) splitter.