Global chemical giant BASF plans to build a new engineering plastics modification unit and a thermoplastic polyurethane (TPU) production unit in the new integrated production base (Verbund) in Zhanjiang, which is under construction. This will be the first batch of devices to be put into production at the integrated base.
Dr. Stephan Kothrade, President, President and Chairman, Greater Asia Region, Greater China, BASF, said at a press conference today: "It has been less than a year since we signed the first memorandum of understanding. It is very exciting to announce that BASF plans to build the first batch of production units at Zhanjiang's new integrated base. The project is currently progressing rapidly to meet the needs of customers in South China for innovative products as soon as possible. "In addition to the two new production units, Zhanjiang Integrated Base Some public facilities will also be built together.
It is understood that by 2022, the new engineering plastics modification unit will contribute 60,000 tons of modified engineering plastics products to China each year. This will bring BASF's total production capacity of modified engineering plastics products in Asia Pacific to 290,000 tons per year. BASF will fully implement the intelligent manufacturing concept based on cutting-edge technology in the new integrated base. The new device will use advanced technologies such as automated packaging, high-tech control systems and automated guided vehicles.
BASF's wholly-owned subsidiary BASF Integrated Base (Guangdong) Co., Ltd. has recently been formally established, further affirming BASF's commitment to the South China market. The company will be responsible for the operation of BASF's new integrated base. Raimar Jahn, President of BASF's Performance Materials Division, said, "We want to increase our support for the South China market and global customers. To achieve this goal, we will be close to the growing customer industry, establish new production facilities, and increase production efficiency through intelligent manufacturing. This will increase our speed of innovation and service efficiency.
Electronic and electrical companies and car manufacturers are actively working with BASF to address market trends such as automotive electrification and miniaturization of electronic equipment. "The growth of the TPU market, especially the rise in demand for high-end applications, has many reasons behind it-including increasingly stringent regulatory requirements and increasing customer sustainability requirements in areas such as electric transportation, lightweighting and automation.
BASF addresses these needs by providing solutions such as security-enhanced cables and wires for automation and automotive, and lightweight materials for consumer products. With the rapid changes in customer demand in various regions around the world, BASF is increasing its investment in emerging markets to meet local customer needs, while continuing to invest in mature economies.
BASF signed the first Memorandum of Understanding with the Guangdong Provincial Government in Berlin, Germany, in July 2018, and signed a framework agreement in January 2019 to develop planning details. Guangdong's integrated base will be BASF's largest overseas investment project to date. The total investment is expected to reach USD 10 billion and will be independently constructed and operated by BASF. The integrated value chain will connect upstream and downstream production units from basic chemicals to consumer goods, supporting growth industries such as consumer goods and transportation. The Zhanjiang integrated base will become BASF's third largest integrated production base in the world, after Ludwigshafen, Germany and Antwerp, Belgium.