BASF India announced that it is proposing to build compounding plant at Thane site for the engineering plastics (KT) business.

The compounding plant for the KT business entails Rs 172 million as a construction cost.

The funds will be financed by internal accruals and borrowings.

The plant capacity would be 9,000 TPA and is expected to come on stream by the second half of 2009.

Shares of the company gained 4.3% at Rs 281.50 on BSE (Friday).