Bayer AG, Europe's second biggest chemical maker, is seeking a bank loan of up to US$800 million to build chemical plants in China.

The Germany-based company will spend US$1.8 billion until 2009 on the construction of facilities on a 1.5 square-kilometre site in Caojing, in Shanghai, which is China's largest chemical industry park. The plants will produce raw materials, including MDI for polyurethanes and polycarbonate for CDs. Bayer is expanding its manufacturing capacity in China to meet growing demand for chemical goods for production in China and the Asia-Pacific region.

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