BASF has officially started construction of its joint venture chemical plant in Chongqing. Together with Chongqing Chemical and Pharmaceutical Holding (Group), the two partners will invest US$5.3bn in the plant. It will produce MDI, a key raw material in the production of polyurethane, which is widely used in a variety of industrial applications, including auto manufacturing and heat insulators for home appliances.

Chongqing Mayor Huang Qifan said at the opening ceremony that the plant will use environmental standards that exceed both local and national benchmarks. “This is going to be a highly safe chemical project,” he said.