Chemetall, the surface treatment business of BASF’s Coatings division, is investing in a new site in Zhejiang province, China. The complex, which will be located in the Dushan Port Economic Development Zone of Pinghu, will house production, warehousing, a laboratory and administrative offices. Completion is planned by 2021.

BASF said Asia-Pacific is the world’s largest surface treatment market. Mike Watson, vice president, surface treatment Asia Pacific, commented: “This investment will create Chemetall’s most comprehensive site globally and enhance our customer support and supply chain to China. It will contribute to the expansion of a broad global portfolio across multiple segments, with quality and environmentally friendly products and system solutions for diverse market segments. These include automotive, auto components, coil, general industry, cold forming, aerospace, aluminum finishing and glass.”

In separate news, BASF announced it will expand production capacities for isoindoline yellow pigments by around 70% by 2020 in order to meet rising demand. The German group did not disclose where the capacity increase would take place.

“Following our recently announced expansion to production capacities for Paliocrom effect pigments, this investment of around €10 million underscores our ambitions for growth as one of the leading manufacturers of high-performance pigments,” said Alexander Haunschild, managing director and senior vice president for BASF’s global pigments brand.

The company said bright yellow tones that offer a high degree of weather resistance and temperature stability are sought after, particularly in demanding applications involving industrial coatings.

BASF is also spending about €15 million to increase capacity for Paliocrom effect pigments by more than 30% at its sites in Ludwigshafen and Besigheim, Germany. The extra capacity is due online by 2020.