The unit is near BASF's regional applications center.
BASF SE is building a new plastic additives plant at its Caojing site in Shanghai, China, as part of its $217 million (1.5 billion RMB) global investment in its plastics additives business.
The plant will have an annual capacity of 42,000 metric tons and will produce antioxidants and associated forms and blends. Completion for the facility is set for 2019, with commercial production to start by early 2020.
"Asia, and particularly the Chinese market, offer significant growth opportunities, driven by diverse applications including packaging, construction, consumer goods, automotive and many more," said Hermann Althoff, senior vice president of BASF's performance chemicals unit in Asia Pacific.
The plant, he added, will be built to reach environmental standards and "have one of the most efficient production processes."
Located within the Caojing complex, the unit will also be close to BASF's regional application center in Shanghai that provides technical support to polymer producers.
Antioxidants help prevent thermal oxidation reactions when plastics are processed at high temperatures, and light-assisted oxidation when plastics are exposed to UV light.