BASF Boosts Production in China to Meet Automotive Demand

BASF SE's BASFY Coatings division has expanded its production capacity at the Caojing plant in Shanghai, China, for polyester and polyurethane resin. Initially set up in 2015 with a capacity of 8,000 metric tons per year, the facility now has more than doubled its production, reaching an impressive 18,800 metric tons annually. This expansion not only reflects BASF’s strategic response to rising market demand but also strengthens its position in the industry.In addition, BASF Coatings is set to enhance its electrocoat binder production at the Caojing site through process optimization starting in early 2026. This strategic initiative will further solidify BASF Coatings' leadership in the rapidly evolving automotive coatings market, enabling the company to better support the growing demand for all coating layers used by automotive original equipment manufacturers (OEMs) and component manufacturers across the Asia Pacific region over the next decade.The expanded resin production capacity and the planned increase in binder capacities will strengthen the company's supply reliability, allowing it to better meet the rising demand for automotive OEM coatings in the region. This expansion highlights BASF's dedication to local manufacturing and its capacity to quickly adapt to customer needs.Shares of BASFY have lost 6.1% over the past year against a 15.6% decline of its industry.Image Source: Zacks Investment ResearchBASFY’s Rank & Key PicksBASFY currently carries a Zacks Rank #3 (Hold).Better-ranked stocks in the basic materials space include Carpenter Technology Corporation CRS, CSW Industrials Inc. CSWI and Axalta Coating Systems Ltd. AXTACarpenter Technology currently carries a Zacks Rank #2 (Buy). CRS beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 15.7%. The company's shares have soared 169.6% in the past year. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.The Zacks Consensus Estimate for CSW Industrials’ current fiscal-year earnings is pegged at $8.50. CSWI, carrying a Zacks Rank #2, surpassed the Zacks Consensus Estimate in each of the trailing four quarters, with an average earnings surprise of 10.1%. The company's shares have rallied 28.4% in the past year.Axalta Coating Systems, which currently carries a Zacks Rank #1, beat the consensus estimate in each of the trailing four quarters, with the average surprise being roughly 16.3%. AXTA’s shares have gained 1.2% over the past year.  Zacks Names #1 Semiconductor StockIt's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report BASF SE (BASFY): Free Stock Analysis Report Carpenter Technology Corporation (CRS): Free Stock Analysis Report Axalta Coating Systems Ltd. (AXTA): Free Stock Analysis Report CSW Industrials, Inc. (CSWI): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks