In order to meet growing demand, especially from the automotive industry in Southeast Asia, BASF (Ludwigshafen / Germany; www.basf.com) is planning to expand capacity of its "Cellasto" microcellular polyurethane. The company says a new production line with be set up in Dahej, Gujarat / India. At the same time, previous TPU production in Dahej is to be discontinued, and from now on, customers in the region will be supplied by other plants. TPU is used in the manufacture of products such as industrial hoses, elevator belts and footwear.

Chairman and managing director of BASF India and head South Asia, Raman Ramachandran, says the shift in production is a response to changes in customers' needs. By 2030, India will probably be among the three largest carmakers in the world, he adds. BASF did not provide information on the new Cellasto capacities.