BASF plans to build polyurethane formulation facilities, or system houses, in China and Colombia. In China, the system house will be in the western city of Chongqing, where BASF previously announced plans to build a facility for methylene diphenyl diisocyanate, a key polyurethane precursor. In Colombia, the system house will be built in Cartagena and serve customers in Colombia, Venezuela, and Ecuador. Anton Traunfellner, managing director for BASF Polyurethanes in South America, expects the regional market to grow by 6% annually in the coming decade. BASF already operates 38 system houses worldwide.