BASF Kicks off Latest Chinese Project

BASF has broken ground for the first production facilities of its latest mega investment in Zhanjiang, Guangdong Province, China, expected to be worth as much as $10 billion altogether. The first plants will produce engineering plastics and thermoplastic polyurethane for the southern People‘s Republic and Asia generally.

By 2022, a compounding plant for unspecified engineering plastics will add capacity of 60,000 t/y in China, bringing BASF’s total output capability for these products in Asia Pacific to 290,000 metric t/y. The additional capacity is designed to meet the growing demand from the automotive, electronics and new energy vehicles (NEV) industries.

The entire integrated (Verbund) site is planned to be completed by 2030. Ultimately, the German group said Zhanjiang will be its third-largest site worldwide, behind Ludwigshafen, Germany, and Antwerp, Belgium

At the new site, BASF will implement a comprehensive smart manufacturing concept that utilizes automated packaging, high-tech control systems and automated guided vehicles. By employing the latest digital technologies and applying the highest safety standards, Brudermüller said the complex will be a role model for sustainable production and contribute to the development of a circular economy in China.

Initial plans for the new Chinese investment were announced in July 2018, and in January 2019, BASF signed a Framework Agreement setting out further details. 

The group’s new wholly-owned subsidiary, BASF Integrated Site (Guangdong), will oversee operations of the new site, the group’s first to be operated completely under its sole responsibility. A new Chinese policy implemented to boost the country’s economy removes the requirement to foreign companies to take a local joint venture partner.