(Yicai) April 15 -- Cellasto, a noise, vibration, and harshness reduction components manufacturer under German chemical giant BASF, said it will invest around EUR60 million (USD67.9 million) to build a second Shanghai factory.

The production expansion aims to capitalize on China's rapidly growing electric vehicle market, Cellasto announced yesterday. The new plant will have advanced mold lines, resulting in a capacity surge of almost 70 percent, with operations likely to start in 2027, it added.

NVH parts, which minimize unwanted sound and vibration in vehicles, are features of the practical performance of many automotive, industrial, and consumer products and are crucial for how users experience products and judge their quality, according to the website of BASF.

"BASF has made substantial investments in China since entering the Chinese market 140 years ago," said Jeffrey Lou, country president and chairman of BASF. "Today's expansion is another strong testament to BASF's commitment to staying close to the local market and our customers.

"As the leading chemical supplier to the automotive industry, BASF strives to accelerate business growth in the automotive sector in China by leveraging our local production network, strong innovation capabilities, and deep market insights," Lou added.

"Cellasto has always delivered exceptional value to automotive manufacturers with the same passion for quality and efficiency," noted Martin Jung, president of BASF's Performance Materials division. "I am confident that this devotion will ensure continued success with our customers in China in this vital automotive market."

Cellasto's first factory in Shanghai became operational in 2010. It has three other Asian plants in Japan, South Korea, and India.

Editor: Martin Kadiev