German major chemicals producer BASF said it has begun production of diphenylmethane diisocyanate (MDI) at its wholly owned facility in Chongqing, China.

“Production will be ramped up gradually in line with market demand,” the company added in a press release.

MDI is an important component for polyurethanes, an extremely versatile plastics material that contributes towards improved insulation, provides lighter materials for cars, and helps save energy in buildings.

According to BASF, its MDI production will support these key industries in China’s western areas.

The BASF portfolio ranges from chemicals, plastics, performance products and crop protection products to oil and gas and it combines economic success with environmental protection and social responsibility.

Through science and innovation, the company enables its customers in nearly every industry to meet the current and future needs of society.

BASF had sales of over €74 billion in 2014 and around 113,000 employees as of the end of the year and its shares are traded on the stock exchanges in Frankfurt, London and Zurich. (AR).