BASF plans to expand Shanghai automotive paint production base

In order to further comply with the urban development plan, help enterprises to innovate and upgrade, and accelerate the pace of stock transformation, BASF Shanghai Coatings Co., Ltd. (BSC) and its long-term partner Shanghai Huayi Group Asset Management Co., Ltd. held the signing ceremony of the Minhang base expansion contract. According to the contract, the two parties will expand the first production base of BASF Coatings in Asia, the Minhang base, and transform it into an Asia-Pacific R & D center focused on environmentally friendly products and solutions.

Zhao Zhengyu, Chairman of BASF Shanghai Coatings Co., Ltd. and Ni Yongsheng, Chairman of Shanghai Huayi Group Asset Management Co., Ltd., respectively addressed the signing ceremony and looked forward to future development plans. Shen Shuhua, general manager of Shanghai Huayi Group Asset Management Co., Ltd., and Raysman, general manager of BASF Shanghai Coatings Co., Ltd., signed the expansion contract of the BASF Shanghai Coatings Co., Ltd. Minhang base, which laid a solid foundation for the establishment and development of the technical center.

It is understood that the first and second phases of BASF's BEACH project have successively carried out the production transfer of solvent-based products to Caojing. At present, the transfer is basically completed. The Minhang Base Expansion Project is an innovative development method by which BSC accelerates upgrades and continuously upgrades energy levels, while further promoting sustainable development and effectively using costs. Currently. The BSC Minhang base expansion project established a technology center through cooperation with Huayi Group.

BASF Shanghai Coatings Co., Ltd. is a joint venture between BASF Coatings Co., Ltd., BASF (China) Co., Ltd. and Shanghai Coatings Co., Ltd. (now "Shanghai Huayi Fine Chemical Co., Ltd."). Founded in 1995, its main products are OEM automobiles Coatings, auto parts coatings and motorcycle coating products, etc. Among them, BASF accounted for 60%, Huayi refined accounted for 40%.

According to the Huayi Group's annual report, BASF Shanghai Coatings Co., Ltd. achieved operating income of 3.87709 billion yuan in 2019, a year-on-year decrease of 3.16%; net profit was 1487.2 million yuan, an increase of 146.52% year-on-year. According to the operating data compiled by Tu Jie, the company's operating income has declined for the first time in nearly six years, and its net profit has grown for the first time in nearly five years.

As an expert in the development, production and sales of innovative and sustainable automotive coatings, automotive refinish paints, industrial coatings and decorative paints, BASF's Coatings Business Unit is dedicated to creating advanced solutions, driving performance improvements, and promoting the development of new designs and new applications To meet the needs of partners around the world. In 2019, the global sales of the coatings business reached approximately 3.75 billion euros.

Dr. Reisman said that it will further strengthen the close cooperation between BASF Shanghai Coatings Co., Ltd. and Shanghai Huayi Group Asset Management Co., Ltd., taking the expansion of the base as an opportunity to continue to take root in Zhuanqiao and Minhang.