Mumbai: BASF, the world's largest chemicals group, is setting up a new engineering plastics plant at Thane, near Mumbai, to service the growing automotive industry in the country.
The Thane plant will have a capacity of 9,000 tonnes a year and is expected to start production by the second half of 2009.
Along with the new engineering plastics compounding facility at Thane, BASF also plans to triple its capacity at its Chennai-based facility by 2009.
"Automotive is one of the BASF's most important target industry segments and our second-largest revenue source," Wolfgang Hapke, president for business development in Asia Pacific, said in a statement.
Germany-based BASF's Indian operations are run by BASF India Ltd and six other subsidiaries which are involved in making various specialty chemicals.
BASF is planning to invest around 2.5 billion euros in Asia by 2010, much of which will go to China while India will get a 'smaller' amount.
Engineering plastics compounds and pollution reducing catalysts for automobiles contributed about 13 per cent to BASF's global revenues - about 7.5 billion euros.
India contributes 75 per cent of revenues in BASF's south Asia operations, which have a turnover of about 796 million euros.
BASF's automobile refineries division produces vehicle coolant Glysantin which is widely used and one of the oldest quality brands in Germany, providing protection against frost, rust and overheating for almost 80 years.
BASF's portfolio ranges from oil and gas to chemicals, plastics, performance products, agricultural products and fine chemicals.
BASF has more than 95,000 employees and posted sales of almost €58 billion in 2007.