BASF (Ludwigshafen / Germany; www.basf.com) has signed a framework agreement with the government of China’s Guangdong province, setting down conditions for operation of the chemical group’s new smart “Verbund” production site. Guangdong in the southwest will be its second major base in the People’s Republic, complementing the original investment at Nanjing in northeast China. The agreement follows a memorandum of understanding announced officially in July 2018 – see Plasteurope.com of 12.07.2018.

Explaining the significance of the new investment in the city of Zhanjiang, Guangdong, BASF chief Martin Brudermüller noted that by 2030, China’s share of global chemical production will rise to nearly 50%. Guangdong is a growing market for innovations from chemistry, and the new site on around 9 km² of land will support customers in multiple industries, he said. What’s more, “chemistry has been recognised by Guangdong authorities as a driving force for numerous downstream industries, with BASF’s new integrated site contributing to the industrial transformation.”

Total investment at Guangdong, estimated to go as high as USD 10 bn (EUR 8.7 bn), will be implemented in phases. The project will include BASF’s first wholly-owned steam cracker in China, expected to go onstream in 2026 with a capacity for 1m t/y of ethylene, along with several plants for consumer-oriented products and solutions. A battery plant has also been discussed. The CEO said the site will benefit from a deep-water port, excellent transportation links and an engaged workforce, as well as its commitment to sustainable development.

For the first time, BASF is embedding sustainability into the framework of the integrated Chinese complex. “Fundamental circular economy concepts” will help customers grow sustainably with the chemical group’s products, solutions and services, and at the same time BASF itself will establish new concepts to improve the sustainability of its own operations, Brudermüller said. An existing smart manufacturing concept is being further developed with an eye to using “cutting-edge” technology to maximise resource and energy efficiency and reduce environmental impact.

When completed in 2030, Guangdong will surpass Nanjing, Jiangsu, the two US Verbund sites at Freeport, Texas, and Geismar, Louisiana, as well as the third Asian site at Kuantan / Malaysia, to become BASF’s third largest integrated complex after Ludwigshafen and Antwerp / Belgium. The BASF-YPC site at Nanjing, established in 2000, is a 50:50 joint venture with Sinopec (Beijing / China; www.sinopecgroup.com), while the Kuantan site established in 1997 is a 60:40 joint venture with Petronas (Kuala Lumpur / Malaysia; www.petronas.com).