Nov. 21 (Bloomberg) -- BASF SE, the world's largest chemical company, plans to start up a new plant to produce piperazine chips in the first quarter to meet demand from drugmakers.

The factory, at BASF's Antwerp, Belgium site will produce as much as 3,500 metric tons of chips a year, the Ludwigshafen, Germany-based company said today in an e-mailed statement. Piperazine is used to produce pharmaceuticals, flame retardants and adhesives, the company said.

To contact the reporter on this story: Sheenagh Matthews in Frankfurt at smatthews6@bloomberg.net.

Last Updated: November 21, 2008 03:20 EST