Mega-investment': Germany's BASF is launching a $10 BILLION petrochemical venture in China The biggest chemical manufacturer in the world, BASF, has officially begun construction of its petrochemical project in southern Guangdong province of China. It is the biggest investment in the 154-year history of the German company.
The Verbund project, based in Zhanjiang, will be the first wholly foreign-owned chemical complex in China to be sealed for a framework agreement in January.
"We are pleased to see the progress of our mega-investment project in China," said Martin Brudermüller, CEO of BASF SE. "We are committed to supporting our customers in southern China in promoting growth with quality products and practical solutions," he added that the new Verbund site will be "a role model for sustainable manufacturing leading to the creation of a circular economy in China." It will mainly manufacture construction plastics and thermoplastic polyurethane (TPU) and some wide-ranging petrochemicals.
The first phase of the project is expected to start in 2022, with an annual production capacity of 60,000 tons. The implementation of the entire project is scheduled for 2030.
Following Ludwigshafen in Germany and Antwerp in Belgium, Verbund will become the third-largest BASF site in the world. The company hopes China, the world's largest marketplace for chemical products, to compensate for 50% of global demand for chemical products by 2030, up from the current 40%.
The project] will provide a solid foundation for a world-class manufacturing group in Zhanjiang and build stronger business links between South China and other Asian countries," said Stephan Kothrade, a regional official of BASF in China. "The project is a signal that China's efforts to further open up are taking effect," said Chinese Premier Li Keqiang.
For many years, BASF has been involved in the Chinese market. It sold more than € 7.3 billion ($8 billion) products to customers in China last year and employed more than 9,000 people in the region.
Tags : China, Germany, BASF, Verbund project, Zhanjiang,