BASF officially launched its smart Verbund project in Zhanjiang, Guangdong province, China, and commenced building its first plants.
The project is estimated to cost US$10 billion as announced in July 2018.
The first plants will produce engineering plastics and thermoplastic polyurethane (TPU) to serve the increasing needs of various growth industries in the southern China market and throughout Asia.
“We are determined to support our customers in southern China drive growth with innovative products and sustainable solutions,” said Dr. Martin Brudermüller, Chairman of the Board of Executive Directors, BASF SE. “By utilizing 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.”
By 2022, the new engineering plastics compounding plant 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, particularly in the automotive, electronics and new energy vehicles (NEV) industries.
BASF Integrated Site (Guangdong) Co. Ltd, BASF’s new wholly-owned subsidiary, has also been officially formed. This entity will oversee the operations of the new Verbund site, underlining BASF’s commitment to the China market.
The Verbund site in Guangdong would be BASF’s largest investment, estimated up to US$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 would 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.
Source: BASF