German chemical giant Bayer plans to invest US$3.1bn in a new factory complex in Shanghai, its biggest investment in a single project outside Germany, South China Morning Post reported. The contract for the project was signed during the visit to China by Germany’s Chancellor Schroeder in October 2001. The complex, which will comprise eight factories in the Shanghai Chemical Industry Park in the suburb of Caojing, will produce coating systems, thermoplastics, base chemicals and polyurethane raw materials for use in the vehicle, construction and white goods industries.
Rival German chemicals group BASF has signed an agreement with the US chemical company Huntsman Polyurethane and a consortium of Chinese chemicals manufacturers to submit a feasibility study for a US$1bn venture to build and operate a chemicals plant near Shanghai, Reuters reported.