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World's biggest chemical company Bayer AG kicked off its new US$450 million polycarbonate plant in the city's Caojing Chemical Industry Zone yesterday to meet growing Asian market demand.

"The investment is part of Bayer's US$3.1 billion to be injected into the zone in the next several years," said Hagen Noerenberg, head of Bayer Polymers.

The move into Caojing will set up an integrated site that will include three large-scale projects for the production of coatings, polycarbonates and polyurethane raw materials.

The polycarbonate plant is expected to become operational in 2006, and will produce makrolon, a high-tech plastic that can be used in producing medical, packaging, automotive and construction materials.

Noerenberg said the plant, which will be built by Bayer Polymers Shanghai Co Ltd, a joint venture with the Shanghai Chlor Alkali Chemicals Co Ltd, is designed to have an annual capacity of producing 200,000 tons of makrolon a year when it is put into production in 2006.

"Large-scale production at a local level is essential since it will enable us to serve the rapidly growing market in the Asia-Pacific region flexibly and quickly," he said.

Worldwide demand for polycarbonates is growing, particularly in Asia, where an average annual market growth of 12 per cent is predicted for the period from 2002 to 2006, with growth in China alone tipped to be as high as 18 per cent.

"The polycarbonates produced will mainly be used to supply customers in the Asia-Pacific region," Noerenberg said.

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