BASF announced in its application to the Bombay Stock Exchange that it plans to expand its production capacity at the Cellasto plant in Taguig, Gujarat. Upon the announcement, BSE data showed the price of the stock dropped 12 rupees or over the previous closing price of Rs 1751.95 0.68%, now Rs 1739.95. Interim stock prices remain at Rs 1721.05, high and low respectively hit 1774.85 rupees and 1692.25 rupees.
Cellasto is the brand name of BASF's polyurethane microporous elastomer product used in suspension systems to reduce noise, vibration and bumpiness in automotive production. Expanding the capacity at the Dach facility will help BASF for two rounds and Four-wheel cars provide a growing market, and the expansion project includes a new line and will complement the Cellasto test equipment installed earlier this year.
BASF also decided to halt the production of thermoplastic polyurethanes (TPUs) at its Dach plant to meet the changing needs of its customers in South Asia, however it will continue to supply TPUs to the southern market through GlobalNet to ensure a seamless supply for its customers.
In management, the discontinuation of production of TPU will not affect the material aspect, nor will it affect the overall development strategy of the Company.