BASF Accelerates Automotive Coatings Growth with Major Production Expansion in Shanghai

BASF and Shanghai Chemical Industry Park jointly celebrate the inauguration of the expanded resin plant at the BASF Coatings Caojing site.
Photo: BASF Coatings

(IN BRIEF) BASF’s Coatings division has significantly increased the production capacity of its Caojing plant in Shanghai from 8,000 to 18,800 metric tons per year for polyester and polyurethane resins used in automotive spraycoats. This expansion, part of BASF’s broader strategy to support growth in China and the Asia Pacific automotive coatings market, is complemented by planned process optimizations starting in early 2026 to further enhance the production of electrocoat binder and intermediate grind resin. The Caojing facility, which celebrated its 10th anniversary this year and is powered entirely by renewable energy, serves a wide range of coating applications and reflects BASF’s commitment to local production, innovation, and sustainability. Industry leaders emphasize that these developments will improve supply reliability and meet the evolving demands of automotive OEMs and component manufacturers.

(PRESS RELEASE) SHANGHAI, 24-Mar-2025 — /EuropaWire/ — BASF SE (ETR: BAS), the world’s largest chemical producer, announces that is Coatings division is proud to announce a significant boost in production capacity at its Caojing plant in Shanghai. Initially established in 2015 with an annual output of 8,000 metric tons for polyester and polyurethane resins used in automotive spraycoats, the facility has now expanded its capacity to 18,800 metric tons per year, more than doubling its former output. This major upgrade not only reinforces BASF’s commitment to excellence in automotive coatings but also positions the company to better serve the rapidly expanding markets across China and the Asia Pacific region.

In addition to the current capacity expansion, BASF Coatings is set to implement further enhancements at the Caojing site. Starting in early 2026, process optimizations will be applied to boost the production of electrocoat binder and intermediate grind resin. This strategic initiative aims to secure a stronger foothold in the competitive automotive coatings market, ensuring that BASF continues to support the evolving demands of automotive OEMs and component manufacturers over the coming decade.

Patrick Zhao, Senior Vice President, Global Automotive OEM Coatings at BASF, remarked, “The increased production capacity for our resins, coupled with the planned enhancements for binders, significantly improves our supply reliability. This expansion underlines our commitment to local production and our agility in meeting the growing demand for automotive coatings in the region.”

Situated within the Shanghai Chemical Industry Park (SCIP), the Caojing resin plant produces an extensive range of coating raw materials, including acrylics, polyester, polyurethane, e-coat binder, and intermediate grinding resin. Notably, the facility is highly automated and operates on 100% renewable energy. This year also commemorates the 10th anniversary of the plant’s successful operation. Jinhua Hou, Deputy Director of the Shanghai Chemical Industry Park Administrative Committee, added, “Over the past decade, the Caojing plant has set a benchmark in safe operations, innovation, and sustainability. The Shanghai Chemical Industry Park remains dedicated to providing BASF and its partners with a superior development environment and comprehensive support, from energy supply to enhanced utilities.”

About BASF Coatings

The Coatings division of BASF is a global expert in the development, production and marketing of innovative and sustainable automotive OEM and refinish coatings, decorative paints as well as applied surface treatments for metal, plastic and glass substrates in a wide range of industries. We create advanced performance solutions and drive performance, design and new applications to meet our partners’ needs all over the world. BASF shares skills, knowledge and resources of interdisciplinary and global teams for the benefit of customers by operating a collaborative network of sites in Europe, North America, South America and Asia Pacific. In 2024, the Coatings division achieved global sales of about €4.3 billion.

Solutions beyond your imagination – Coatings by BASF. For more information about BASF Coatings and its products, visit www.basf-coatings.com.

About BASF

At BASF, we create chemistry for a sustainable future. Our ambition: We want to be the preferred chemical company to enable our customers’ green transformation. We combine economic success with environmental protection and social responsibility. Around 112,000 employees in the BASF Group contribute to the success of our customers in nearly all sectors and almost every country in the world. Our portfolio comprises, as core businesses, the segments Chemicals, Materials, Industrial Solutions, and Nutrition & Care; our standalone businesses are bundled in the segments Surface Technologies and Agricultural Solutions. BASF generated sales of €65.3 billion in 2024. BASF shares are traded on the stock exchange in Frankfurt (BAS) and as American Depositary Receipts (BASFY) in the United States. Further information at www.basf.com.

Press Contact:
Jörg Zumkley
Media Relations BASF Coatings
+49 173 2001896

SOURCE: BASF SE