BASF will invest about €10 million to expand capacity in Ludwigshafen, Germany, for Paliocrom effect pigments. The investment, which BASF said has been prompted by recent color trends and rising demand, will increase production by more than 20% by 2017. No capacity figures were revealed.

The company is anticipating that the Paliocrom product range, which features gold, orange and new red pigments, will grow significantly above the general pigment market for automotive coatings.

BASF said Paliocrom's unique effect comes from its high chroma metallic luster and hiding power making it suitable for high-quality automotive finishes and industrial paints.