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BASF begins $10 billion Verbund project in China



Global chemicals giant BASF has this week kicked-off construction of its $10 billion smart Verbund project at Zhanjiang, Guangdong Province, China which will produce engineering plastics and thermoplastic polyurethane (TPU) to serve growing demand across southern China and the wider Asia region.
BASF begins $10 billion Verbund project in China
(Representatives of BASF and local Chinese government officials launch the new Verbund project. Image via BASF).

By 2022, the new engineering plastics compounding plant (which will be the first plant to be constructed at the facility) will supply an additional capacity of 60,000 metric tons per year in China, bringing BASF’s total capacity of these products in Asia Pacific to 290,000 metric tons per year. The new capacity will enable BASF to meet the growing demand of its customers in the automotive, electronics and new energy vehicles (NEV) industries.

Commenting on the commencement of construction, Dr Martin Brudermuller, Chairman of the Board of Executive Directors, BASF SE, said:

“We are pleased to see our mega-investment project in China is progressing. We are determined to support our customers in southern China drive growth with innovative products and sustainable solutions.”

“By utilising the latest digital technologies and applying the highest safety standards, the new Verbund site will be a role model for sustainable production contributing to the development of a circular economy in China.”

BASF plans to implement a comprehensive smart manufacturing concept at the Verbund site based on cutting-edge technologies. The new site will utilise automated packaging, high-tech control systems, and automated guided vehicles.

With the Zhanjiang Verbund site, BASF will also contribute to the advancement of the local community. The company is forming strategic partnerships with several local technical institutions to develop young technical talent.

Commenting on the site’s location, Dr. Stephan Kothrade, President and Chairman Greater China, BASF, said:

“Zhanjiang is a perfect location for BASF to further strengthen our footprint of local production in China. The smart Verbund site will form a solid foundation for a world-class industrial cluster in Zhanjiang and establish stronger business connections between South China and other Asian countries.”

BASF signed the first Memorandum of Understanding for the Verbund site with the Guangdong Provincial Government in Berlin, Germany, in July 2018. In January 2019, the company signed a Framework Agreement setting out further details of the plan. The Verbund site in Guangdong would be BASF’s largest investment, estimated at up to $10 billion upon completion, and would be operated under the sole responsibility of BASF. The integrated value chain will connect upstream and downstream plants from basic chemicals to more consumer-oriented products and solutions, serving growth sectors like consumer goods and transportation. The site will ultimately be the third-largest BASF site worldwide, following Ludwigshafen, Germany and Antwerp, Belgium.

The first plant producing engineering plastics compounds is expected to be operational by 2022, and the whole Verbund site is planned to be completed by 2030.

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BASF begins $10 billion Verbund project in China - Time to read 3 min
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