BASF to set up Rs 1,000-cr chemical facility at Dahej

Chemicals producer BASF India today said it will invest Rs 1,000 crore to set up a new production facility at Dahej in Gujarat.

The board today approved the proposal for setting up the facility, BASF India, which is a part of global chemicals manufacturer BASF, said in a filing to the BSE.

"The total cost of the setting up of site is estimated to be Rs 1,000 crore and the same will be financed through internal accruals and loans," it said.

The site will employ more than 250 people at full capacity, primarily in operations. The facility will start production in 2014.

Bucking the general weak trend, shares of the company were trading 1.87% higher at Rs 517 apiece on the BSE in afternoon trade.

With this new production plant, BASF aims to ensure local supply for growing markets and industries such as appliances, footwear, automotive, construction, adhesives, architectural coatings, paper and personal care.

The new facility will be an integrated hub for polyurethane manufacturing and will also house production facilities for care chemicals and polymer dispersions for coatings and paper.

BASF India manufactures tanning agents, crop protection chemicals, textile chemicals and automotive and coil coatings, construction chemicals, among others.