BASF has cemented its plans for a second integrated Chinese production hub, at Guangdong in the southwest, complementing the existing site opened at at Nanjing in the northeast two decades ago.

Following a memorandum of understanding inked last November, the German chemical giant and the government of Guangdong Province last week signed a framework agreement for operation of the site. When completed in 2030, it will be the group’s third largest, behind Ludwigshafen headquarters and Antwerp, Belgium.

Altogether, BASF plans to invest as much as $10 billion, in several stages, in the Guangdong city of Zhanjiang. For the first time in China, the group will wholly own its steamcracker – the facility at Nanjing is operated as a 50:50 joint venture with Chinese state-owned Sinopec. The new cracker is due to go on stream in 2026 with capacity for 1m t/y of ethylene. Downstream plants will follow.

Zhanjiang has its own deep-water port, and according to BASF also has “excellent transportation links and an engaged workforce, as well as its cultural heritage and commitment to sustainable development.”

With the new complex , the German group plans to modernize its approach to sustainability in China. CEO Martin Brudermüller said employing fundamental circular economy concepts will help BASF’s Chinese customers grow sustainably, and BASF at the same time will improve the sustainability of its own operations.

For this purpose, the chemical proucer will tweak an existing smart manufacturing concept, the CEO said, leveraging “cutting edge” technology to maximize resource and energy efficiency and reduce environmental impact.”

In addition to Nanjing and Guangdong, BASF has a third integrated hub in Asia, a 60:40 joint venture with Petronas at Kuantan, Malaysia, along with two major sites on the US Gulf.