German chemical giant BASF is investing $45 million to build a production plant that will create more jobs.

The new plant is part of the company's plan to expand its agricultural solutions business in Asia-Pacific, said Mr Gustavo Palerosi Carneiro, the head of BASF's agricultural solutions business in the region on Wednesday.

The plant, which is expected to be completed by September next year, will supply the company's patented crop protection products.

Around 7 million litres of the product will be produced a year once the facility is fully in operation. That amount is enough to cover 20 million ha of farmland.

The new facility will expand BASF's existing operations in Tuas by about 1,000 sq m to cover about 6,200 sq m.

Mr Carneiro said: "Singapore's status as a world-class logistics hub alongside its free trade agreements with most Asia-Pacific markets make it an ideal location for a facility of this nature."

He added that BASF's existing infrastructure in the Republic will allow production to begin faster, compared with other countries where it might not have a presence.

Mr Vincent Gros, president of BASF's agricultural solutions division, said the new facility can help farmers in Asia to improve the productivity and sustainability of their farms.

BASF is the world's largest chemical producer. It has four production facilities and about 606 employees in Singapore as of end-2018, according to its website.

The chemicals industry accounted for about 30 per cent of Singapore's fixed asset investment commitments last year, according to the Economic Development Board.