Bayer MaterialScience, a business unit under German industrial giant Bayer, has said it is expanding its plant for coating and adhesive raw materials in Shanghai, its most important production site in the Asia-Pacific region.

The company plans to build up a new facility for polyurethane dispersions with an annual capacity of 20,000 tons. It is scheduled to come on stream in the second quarter of 2008.

The company will also increase its annual production capacity for the aromatic polyisocyanate Desmodur L to 20,500 tons during the second half of 2007.

Annual capacity for aromatic grades of the Desmodur IL product line will also be doubled to 5,500 tons by the end of 2007, and production of aliphatic polyisocyanates of the Desmodur N series will be expanded by the start of 2008.

"With a new plant and two expansion measures in Shanghai, we want to ensure long-term supply to our customers in this region and to keep pace with future market growth," said Volker Mirgel, senior vice-president of the coatings, adhesives and sealants business unit in the Asia-Pacific region.

"With that, we will also consolidate our position as one of the world's leading producers of polyurethane coating and adhesive raw materials," he said.

These three measures are part of a comprehensive Bayer investment program at its integrated Shanghai site, with a total investment of 1.8 billion euros by 2012.

"China's coatings output last year reached 4 million tons and the market has continuously experienced double-digit growth for almost a decade," said Li Xilin, director and head of the coatings business in China.

"Polyurethane-based coatings today offer the best performance spectrum. With the expansion of our capacity, we will be able to serve the increasing market demand with the best products," he said.