After a difficult 2005 in Brazil, the local subsidiary of German chemical group BASF believes that there will be a recovery in the market in 2006. According to Rolf-Dieter Acker, president of BASF for Latin American, the company plans to invest approximately €148.5 million in Brazil - 90% of the €165 million allocated to the whole region for the period 2006-2010.

"The Brazilian unit is among the six or seven of the largest companies in the group worldwide," he said.

Most of the funds will be used to upgrade production of agricultural chemicals and acrylic dispersions. "The company will be able to increase production of any product, depending on demand,” he added.

In 2005 BASF completed a €3.3 million improvement project that will hopefully raise production of acrylic dispersions at the Guaratinguetá factory from 70,000 tons to 90,000 tons per annum. Production of these products may be increased further in the next two to three years depending on demand. Acrylic dispersions are used in the manufacture of products such as leather and textiles. According to BASF the market for these products is currently growing at a rate of 4% to 5% per annum in Brazil.