BASF Demarchi, BrazilBrazil – The chemicals company is investing €2.5m ($3.5m) at its site in the state of São Paulo to expand its capacity for waterborne automotive products, with the aim of meeting the requirements of carmakers which are now establishing themselves in the country.

According to BASF, the move also fits with an increasing trend toward the use of waterborne coatings, which are more eco-efficient than conventional solvent-borne products.

BASF’s longstanding clients include GM, Volkswagen, Fiat and PSA; more recently the company has won supply contracts with Hyundai and Chery. In addition to Demarchi, BASF has a second South American production site in Buenos Aires, Argentina.