BASF signs a framework agreement with Guangdong Province: building a smart Verbund Site

January 10, 2019 - Martin Brudermueller, Chairman of the Executive Board of BASF Europe, and Lin Shaochun, Vice Governor of Guangdong Province, signed a framework agreement at Ludwigshafen. Further clarify the planning details of BASF's establishment of a BASF Verbund Site in Guangdong, China. Since the signing of the memorandum of understanding between the two parties in July 2018, BASF officially announced the establishment of a second BASF Verbund Site in China in Zhanjiang.

Mr.Brudermueller said: "China will account for nearly 50% of global chemical production by 2030. Guangdong is an important growth market for chemical innovation products, and our new base will support customers in multiple industries. We aim to product portfolio , solutions and services to help customers achieve sustainable growth, while also upgrading their sustainable operations by building innovative ideas."

The leaders of the Guangdong Provincial Government said that chemistry has promoted the development of countless downstream industries, and BASF's new Verbund site will contribute to the industrial transformation of Guangdong Province.

According to this framework agreement, the new Zhanjiang Verbund site will fundamentally apply the concept of circular economy to support customers in South China in a sustainable production mode. At the Verbund site, waste and by-products from one unit can be used as raw materials for another unit. A smart production concept based on advanced technology is being developed to maximize resource and energy efficiency and reduce environmental impact. The project will cover an area of approximately 9 square kilometers.

Zhanjiang City is located in the southwestern center of Guangdong. BASF's new Verbund site will benefit from its abundant natural resources, deep water ports, efficient transportation hubs and sufficient labor. Zhanjiang’s cultural heritage and commitment to sustainable development will also benefit BASF.

The total investment of the project will reach 10 billion US dollars and will be implemented in phases. The new base will include a steam cracker that is fully operated by BASF and produces 1 million tons of ethylene per year, and several production and solution production units for the consumer market.

BASF operates six Verbund site worldwide: two in Europe (Ludwigshafen, Germany, Antwerp, Belgium), two in North America (Texas Freeport, Louisiana, USA), two in Asia. BASF's Verbund Site in Nanjing, China was established in 2000 and is a joint venture with Sinopec (50:50). Its integrated base in Kuantan, Malaysia, was established in 1997 and is a joint venture with Petronas (60:40).