BASF to invest $200M to build factory in Gimcheon

BASF, a Germany-based global chemical company, will invest some $200 million to build a plastics factory in Gimcheon, North Gyeongsang, capable of producing about 70,000 tons annually, the city government announced on Wednesday. This is part of BASF’s joint project with Kolon Plastic. Construction on the new factory will begin this year and is scheduled for completion in 2018. It will be located next to an existing factory owned by Kolon.

Together, the two factories will constitute the world’s largest polyoxymethylene (POM) production facility. To open the factory, the German chemical company has recently established Kolon BASF innoPOM in Korea, a joint venture with Kolon Plastic, the company wrote in a regulatory filing on Wednesday. The two companies have set some $50 million in capital for the joint venture.