BASF said yesterday that it is investing around 90 million euros (US$119 million) to build a resin plant in Shanghai to meet demand for automotive coatings in Asia.

Production will start in the second half of 2015, the German chemicals maker said. Resin is a key intermediate used in the production of coatings.

The new plant in the Shanghai Chemical Industry Park will be adjacent to another BASF automotive coatings plant, which broke ground early this year. The company expects the close proximity to allow for more synergies and efficiency.

"The continued investment in our infrastructure and capacity demonstrates our strong commitment to supporting our customers' growing business in the automotive market in Asia-Pacific, particularly in China," said Peter Fischer, senior vice president for coatings solutions in Asia-Pacific.