(Yicai Global) Dec. 13 -- German chemical giant BASF SE [ETR:BAS] inaugurated a new, world-class automotive coatings plant at the Shanghai Chemical Industry Park, providing services for booming automotive market in China and the rest of the Asia-Pacific region. 

The EUR140 million (USD164 million) project is an extension of the existing automotive coatings plant, a joint venture between BASF and a local chemical enterprise in Shanghai, online media outlet ccin.com.cn reported yesterday. The new plant will be a production hub for water soluble coatings, closely connected to the company's existing infrastructure and research and development (R&D) laboratories.

Last year, 48.6 million light vehicle units were produced in the Asia-Pacific region, accounting for 52 percent of global output. "China has become the biggest growth driver for the global automotive market," said Dirk Bremm, president of BASF's coatings division. "The inauguration of this new plant in Shanghai will help us support the growth of our customers," he added.

A new automotive application center in Shanghai, established by BASF, will support the new plant, providing automotive manufacturers access to advanced R&D facilities by the end of 2018.

BASF opened a BASF Innovation Campus Asia-Pacific in Shanghai in 2012, being one of the largest production bases of the company outside Germany. By 2020, the research team based in Asia-Pacific region would account for 25 percent of the global headcount, said the head of the company.