Bayer has signed a basic agreement on a production site in China with a total investment of USD 3.1 billion. Bayer signed the agreement with the Shanghai Chemical Industry Park Company Ltd on 31 October 2001. Construction was scheduled to begin on 2 November 2001 in conjunction with the inauguration of Bayer’s new Polymer Technical Centre in Pudong. At the heart of the agreement with the Shanghai Chemical Industry Park Company are the permits for the three core projects to manufacture coatings systems, thermoplastics and polyurethane raw materials. These permits have already been issued or are about to be approved. The first project is to manufacture colorants and coatings systems for use in the automotive, construction and furniture industry. Bayer will invest a total of USD 110 million until the year 2008. – The second project is a world-scale facility for the manufacture of Bayer’s polycarbonate, established in step with the coatings production unit. Total investment for this project amounts to USD 450 million. Bayer holds a 90% stake in the new subsidiary Bayer Polymers (Shanghai) Company Ltd. – The third key project is a large complex for the manufacture of polyurethane raw materials. This versatile product is used as soft or rigid foam in many different applications, especially in furniture, in the automotive and construction industries, but also in refrigeration and cooling equipment and for products in the sports and leisure industries.