BASF SE, the world's largest chemical company, kicked off the construction of a new chemical plant in North China's harbor municipality of Tianjin on Wednesday, said an official with the company.

With an investment of 85 million yuan ($13 million), the Tianjin project is part of BASF SE's development strategy for China, said Dr Melanie Maas-Brunner, Group Vice President of BASF Polyurethanes Asia Pacific.

The Tianjin project will include a center for sales and technology services in addition to a space for manufacturing an organic compound used in the production of polyurethane foams.

China has become world's largest polyurethane market. It is expected that the demand for polyurethane in China will continue to grow in the coming decade, said Dr Maas-Brunner.

The new plant, covering an area of 3.4 hectares, is expected to open by the end of 2012.

BASF SE also started building a chemical plant in Southwest China's Chongqing municipality on April 11.