The integrated base in Guangdong will be BASF's largest overseas investment project to date and will be operated by BASF. The total investment is expected to reach US $ 10 billion.
"Within less than a year of signing the first memorandum of understanding, we announced that BASF plans to build the first batch of production units at the new integrated base in Zhanjiang, which is very exciting. The project is currently progressing rapidly to meet the needs of customers in South China for innovative products Demand. "Dr. Kevin Di, President of BASF's Asia Pacific (Functional Management), President and Chairman of Greater China, said in Guangzhou on May 21.
The BASF Group is a German chemical giant and a Fortune 500 company. The BASF Group ’s integrated fine chemical base in Zhanjiang, Guangdong is the “first example” of a wholly foreign-owned enterprise in the Chinese heavy chemical industry.
According to the 21st Century Business Herald reporter, BASF signed the first Memorandum of Understanding with the Guangdong Provincial Government in July 2018 in Berlin, Germany, and signed a framework agreement in January 2019 to draw up planning details.
And just on the morning of May 21st, the global chemical industry giant BASF Group of Germany (hereinafter referred to as "BASF") plans to build a new engineering plastic modification device and a thermoplastic polyurethane (TPU) in the new integrated production base (Verbund) of Zhanjiang under preparation ) Production equipment. This will also be the first batch of devices to be put into production at this integrated base.
According to the 21st Century Business Herald reporter, by 2022, the new engineering plastics modification device will contribute 60,000 tons of modified engineering plastics products to China each year. This will bring BASF's total annual production capacity of modified engineering plastics products in Asia Pacific to 290,000 tons.
Raimar Jahn, president of BASF's Performance Materials division, said that BASF hopes to increase its support for the South China market and global customers. To achieve this goal, BASF will be close to the growing customer industry, establish new production facilities, and increase production efficiency through intelligent manufacturing.
Raimar Jahn revealed that electrical and electronics companies and car manufacturers are actively working with BASF to address market trends such as automotive electrification and miniaturization of electronic equipment. BASF addresses these needs by providing solutions such as security-enhanced cables and wires for automation and automotive, and lightweight materials for consumer products.
There are many reasons behind the growth of the TPU market, especially the rise in demand for high-end applications-including the increasingly stringent regulatory requirements and the increasing sustainability requirements of customers in areas such as electric transportation, lightweighting and automation. 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.
Guangdong's integrated base will be BASF's largest overseas investment project to date. The total investment is expected to reach US $ 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.