SÃO PAULO, Brazil – BASF has invested €2.5 million in its Demarchi coatings site, located in the state of São Paulo, Brazil, to expand its capacity to serve Brazil’s automotive industry with waterborne automotive coatings.

The goal is to meet market demands generated by new carmakers setting up their plants in the country and using waterborne technology rather than solvent-borne. BASF is the pioneer in developing waterborne basecoats for the automotive industry.

In addition to the traditional clients such as GM, Volkswagen, Fiat and PSA, and a strong presence in the segment of coatings for trucks, BASF has in the past years received new supply contracts, which include carmakers such as Hyundai and Chery.

Another trend in the market is the use of integrated processes where the paint line is shortened by one step. This means that less material, time and energy are used. At the same time, the same application quality can be achieved.

In South America, BASF has two plants where automotive coatings are produced, one in Demarchi, Brazil, and the other in Buenos Aires, Argentina.