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Home >> News & Media Relations >> BASF expands its capacity in the Chinese building sector with a new production facility in Huzhou
09/12/2008 

BASF expands its capacity in the Chinese building sector with a new production facility in Huzhou 

  • Wide range of construction systems products for the vibrant Chinese construction industry
  • Exterior Insulation and Finishing Systems to serve increasing need for energy-efficient buildings

On December 9, 2008, BASF inaugurated its new construction chemicals production facility in Huzhou, China. With this facility BASF’s Construction Chemicals business will offer a comprehensive range of construction systems products and will be able to increase its capacity to capitalize on the growth opportunities in the Chinese construction sector.

   
Mark Volmer (3rd from left) and Bernhard Hofmann (3rd from right) inaugurate the new construction Chemicals plant at the well established Huzhou site.  

The ceremony was officiated at by government officials, customers and BASF’s senior executives including Dr. Bernhard Hofmann, President of BASF’s Construction Chemicals Division, Dr. Zheng Daqing, Senior Vice President, BASF Group and Member of BASF Greater China Country Board and Mr. Mark Volmer, Vice President and responsible for BASF’s Construction Chemicals business in Asia Pacific.

Located roughly three kilometres from the old plant which is situated in the Huzhou Economy and Technology Development Zone (150 kilometres from Shanghai), the newly relocated plant produces advanced products used in construction industry. They span from Grouting Systems, Concrete Repair and Protection Systems, Tiling Systems to Industrial and Commercial Flooring Systems. A production line of External Insulation Finishing Systems (EIFS) will cater to the needs of energy efficiency in buildings.

“China is the world’s largest construction market. The relocation of the Huzhou site has increased our capabilities substantially to satisfy the needs of the vibrant Chinese construction industry,” said Hofmann, addressing customers, officials and employees during the opening ceremony. “With its modern manufacturing technology, this new facility signifies our strong commitment to the Chinese market development and to our customers, who will be able to benefit from the high quality of the products, specifically designed for local needs.”

Recent years have witnessed continually robust growth in the Asian construction industry, especially in China. In the first three quarters of 2008, the gross output value of the Chinese construction was RMB 3,755 billion (approximately EUR 4,28 billion), up 22.8 percent against the same period last year, according to the National Bureau of Statistics of China. Also the economic stimulus package announced by the Chinese Government on November 9 calls for a high amount of spending for infrastructure projects.
 
“With a space of 20,000 square meters, the new Huzhou plant represents BASF’s major construction systems production facility in China,” explained Hofmann, “It will put BASF in a stronger position to serve the need of the Chinese market for the latest technology in construction chemicals.”

Asia is regarded as the fastest-growing market of green buildings. China, for instance, wrote energy efficiency in building construction into its Eleventh Five-Year Plan (2006-2010), in which the energy-saving target for new building is increased from 30% to 50% and major cities even reach 65%, which means over 1.6 billion square meters of new energy-saving building will be built by the end of 2010. In addition, a national decree issued by the Chinese government went into effect on October 1, 2008 that all public residential buildings and public institutions must comply with the energy efficiency guidelines.
 
“The new facility in Huzhou will allow BASF to offer cutting-edge EIFS technologies to meet the greater demand for energy preservation in buildings and help our customers to achieve regulatory compliance,” commented Volmer. The launch of the new Huzhou plant strengthens BASF’s network of construction chemicals production facilities in China . BASF’s Construction Chemicals business is operating 11 other production facilities in Greater China.

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