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BASF signs framework deal with Guangdong on its $10b project

By Li Wenfang in Guangzhou | chinadaily.com.cn | Updated: 2019-01-11 13:51
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A BASF factory in Ludwigshafen, Germany. [Photo/VCG]

German chemical giant BASF announced on Thursday it signed a framework agreement with Guangdong provincial government to further clarify the planning details for its $10 billion Verbund chemical complex in Zhanjiang city.

BASF signed a memorandum of understanding for its second Verbund chemical project in China in July last year. According to the agreement signed on Thursday, this project in Zhanjiang will take circular economic approach and sustainable production mode to support its clients in South China.

Chemical output in China is expected to grow to 50 percent of the global total by 2030 and Guangdong stands as an important growing market for innovative chemical products, said Martin Brudermüller, chairman of the board of executive directors of BASF.

The project in Zhanjiang is set to contribute to the industrial transformation in Guangdong, the company said in a statement.

The idea of advanced technology and smart production is being brewed to maximize resource and energy efficiency and to reduce the impact on the environment.

Covering an area of 9 square kilometers, the project in Zhanjiang will bank on rich natural resources, deep-water port, efficient transport hub and abundant labor.

BASF will also benefit from the cultural heritage and the Zhanjiang city's commitment to sustainable development.

The project will include an ethylene unit with annual production of capacity of 1 million tons.

BASF currently runs six Verbund projects globally, including one in Nanjing, Jiangsu province.

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