Heuser said a significant increase in capacity of Elastolan TPU, the second expansion project BASF has completed to produce a versatile material that offers the highest innovation potential, will surely reinforce its position in the region.

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"The expansion of capacity for TPU in China will support growth of the rapidly growing market for textile, footwear, wire and cable sheathing and other industrial applications," he said.

BASF has also enhanced the capacity of the existing facility at BASF Pudong Cellasto site, strengthening its technical leadership of Cellasto in Asia Pacific, a customized solution for damping and reduction of the noise, vibration and harshness level of vehicles, said Wolfgang Micklitz, vice president of BASF Global Business Management Cellasto.

"Our purpose is to better serve the dynamic Asian automotive market," said Micklitz.

More than 42 million cars were sold in Asia Pacific and over 20 million in China in 2013. The number is expected to increase to 33 million in China and 62 million in Asia Pacific by 2020, according to the LMC Automotive Ltd 2013 Report.

BASF currently produces Cellasto at six sites worldwide, including Lemforde in Germany, Shanghai and Nansha in China, Guaratingueta in Bazil, Shinshiro in Japan and Wyandotte in the United States.

"The new technical and production facility of Cellasto in Shanghai marks another milestone of BASF as a leading supplier of automotive suspension parts in Asia and will help its customers perform more successfully in the local competitive business environment," he said.