The Verbund site in Guangdong would be BASF’s largest investment and would be operated under the sole responsibility of BASF. China – with a world market share of approximately 40% – is the largest chemical market, and dominates the growth of the global chemical production. The investment is estimated to reach up to $10 billion by completion of the project around 2030. The first plants could be completed by 2026 at the latest.
In the initial phase, the BASF project would include petrochemical plants. A steam cracker with a planned capacity of 1 million metric tons of ethylene per year would be the starting point of the value chains at the new integrated site. In the next phases, plants for more consumer-oriented products and solutions would be built, to serve sectors like transportation or consumer goods. The site would ultimately be the third-largest BASF site worldwide, following Ludwigshafen, Germany, and Antwerp, Belgium.
Guangdong province is home to customers from these key industries, as well as other fast-growing industries. With more than 110 million residents, Guangdong is the most populous province in China. Its gross domestic product, currently growing at 7% annually, already exceeds that of Spain and will soon have reached that of South Korea.
At the new site, BASF intends to implement a comprehensive smart manufacturing concept based on cutting-edge technologies. In the future, customers based in South China would be supplied from this high-tech Verbund site.
Globally, BASF currently operates six Verbund sites: two in Europe (Ludwigshafen, Germany; Antwerp, Belgium), two in North America (Freeport, TX, USA; Geismar, LA, USA) and two in Asia. The Verbund site in Nanjing, China, established in 2000, is a 50:50 joint venture with Sinopec, while the Verbund site in Kuantan, Malaysia, established in 1997, is a 60:40 joint venture with Petronas.