Bayer signed an agreement to build a US$100 million coatings plant in Shanghai. The facility is part of Germany-based Bayer's planned US$3.1 billion investment in facilities in Shanghai over the coming years. The plant will produce HDI, a chemical used for automotive, industrial and plastics coatings. Construction of the facility is scheduled to begin in autumn 2004. Once completed, the plant will have an annual production capacity of 50,000 tons per year.