Germany's Bayer launched a massive new chemical plant Tuesday near Shanghai, part of a US$1.8 billion (A1.4 billion) integrated facilitybeing built to keep up with soaring demand. The complex, which will make polyurethane and polycarbonate _ used in auto and furniture finishes, insulation and footwear _ is in an industrial park southwest of downtown Shanghai along Hangzhou Bay. It's expected to be fully completed by 2008.

  Bayer (China) Ltd., a wholly owned subsidiary of the Leverkusen-basedchemicals and pharmaceuticals company, says the new Shanghai plant is meant to assure the company a complete manufacturing base to meet demand in Asia, which is growing by more than 10 percent per year. "In China, particularly, we are on the path of strong growth, supported by massive investments," Bayer AG Chief Executive Werner Wenning told reporters ahead of the plant's opening ceremony. "It is our firm intention to continue to grow faster than the market and to further expand our presence in China," Wenning said. Bayer is one of many companies that view China as indispensable for their businesses. Last month, Germany's BASF AG, Texas-based Huntsman Corp.,and three Chinese companies opened a US$1 billion (A780 million) facility in the same Shanghai chemical park. "The government is not putting many limits on investment in this industry, so it is enjoyingstrong opportunities and competition," says Kang Kai, an industry analyst at Guotai Jun'an Securities Co. "China has a big potential market for chemical products and this will remain true for at least another five to 10 years," Kang said. The Shanghai complex, Bayer's largest-ever investment in a single project, includes an 80,000 tons per year isocyanate facility to process methylene diphenyl diisocyanate, better known as MDI, which is a key raw material for the polyurethane industry. By completion in 2008, the plant is expected to be the world's largest full processing facility for MDI, at 350,000 tons per year. China has welcomed such investments to help reduce its need for costly imports of raw materials and to bring its own antiquated industries up to 21st century standards.