BASF expands Brazil auto catalyst capacity

06 February 2008 20:30  [Source: ICIS news]

HOUSTON (ICIS news)--BASF will expand its automotive catalyst manufacturing capacity in Brazil by the end of March in order to meet rising demand, the company said on Wednesday.

“The expansions…will enhance our ability to supply our customers with the emission control technologies they require,” said president Wayne Smith of BASF’s Catalysts division. The statement did not disclose production volumes or financial details of the expansion.

Brazilian demand for catalysts in 2009 will grow faster than the rate of car sales due to the nationwide adoption of Euro 4 standards for all light- and heavy-duty diesel vehicles, US Low Emission Vehicle (LEV) standards for all gasoline/alcohol powered vehicles, and Euro 3 regulations for motorcycles, BASF said.

Looser credit restrictions and overall economic growth are causing Brazilians to buy more cars every year. Brazilian sales soared almost 28% in 2007 compared with the previous year, reaching a record of 2.46m units including 2.2m domestic vehicles.

Brazilian car sales are expected to rise 20% in 2008, BASF said.

Carmakers and auto parts manufacturers plan to invest some $15bn (€10.2bn) in Brazil over the next three years, Trade Minister Miguel Jorge said in October.

BASF Catalysts is also expanding its automotive catalyst plants in Shanghai, China, and Chennai, India, to meet growing customer demand over the next few years. BASF Catalysts is a market leader in automotive catalysts.

 

ICIS Copyright © Reed Business Information 2009

Author: John Waggoner
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