BASF (Ludwigshafen / Germany; www.basf.com) and Sinopec (YPC, Beijing / China; www.sinopecgroup.com) have signed a memorandum of understanding (MoU) to expand output of their existing joint venture BASF-YPC at Nanjing, Jiangsu / China. Plans call for a new steam cracker with capacity for 1m t/y of ethylene, complementing an existing cracker, which according to Plasteurope.com’s Polyglobe database (www.polyglobe.net) has capacity to produce 740,000 t/y. A final investment decision will be made after completion of a feasibility study at the end of 2018. Under the terms of the MoU, BASF-YPC will take a 50% stake in the new cracker, with Sinopec’s Yangtzi Petrochemical (YPC) taking the other 50%.

The two chemical producers said the additional ethylene capacity will allow further expansion of downstream production facilities at the Nanjing site – BASF’s first in China – which has been extended and upgraded several times since going onstream in 2005. There are also plans to add production facilities for battery materials. Here, BASF said the partners want to take advantage of growing Chinese demand for innovative battery materials in a number of applications, in particular in alternative energy.

Since BASF-YPC was founded in 2000, the German and Chinese heavyweights have invested around USD 5.2 bn at Nanjing. The JV, which produces altogether 3m t/y of chemicals and polymers for the Chinese market, reported sales of CNY 21 bn (USD 2.7 bn) in 2017. The north China site is one of six integrated complexes operated by BASF alone or with a partner. Its other Asian hub is the JV with Petronas (Kuala Lumpur / Malaysia; www.petronas.com) at Kuantan / Malaysia. In July 2018, BASF announced plans for a second Chinese hub – without a local partner – in the southern China province of Guangdong. This is projected to go onstream from 2026 – see Plasteurope.com of 12.07.2018. The petrochemicals and plastics giant operates two integrated sites in Europe, at Antwerp / Belgium in addition to Ludwigshafen, and at Freeport, Texas / USA.