GERMAN chemical group BASF AG said its new engineering plastics compounding plant in Shanghai will benefit from China's booming auto industry.

With the new plastics material, "the advantage for the car maker is - apart from lower costs - weight savings of up to 40 percent compared with conventional metal mounts, and a more fuel efficient vehicle which in turn leads to reduced exhaust emissions," said Martin Brudermuller, an executive director for Asia of BASF AG. BASF officially launched the new plant, with annual capacity of 45,000 tons, in Pudong on Friday. Engineering plastics are used in automotive construction as well as the electrical and electronics industries. Over the next decade, the Asia Pacific market for engineering plastics is expected to grow on average by about seven percent per year, BASF said. In China this growth is expected to be higher.