BASF SE said Monday that its site under construction in southern China is expected to deliver annual sales of €4 billion to €5 billion ($4.69 billion to $5.86 billion) by 2030.
The German chemicals company said it is targeting a contribution in earnings before interest, taxes, depreciation, and amortization of €1.0 billion to €1.2 billion from its integrated Verbund site in Zhanjiang.
The project, costing €8 billion to €10 billion, is the second major Verbund site in China. Unlike BASF’s site in Nanjing, which it operates with China’s Sinopec Corp., the facilities in Zhanjiang belong to BASF alone.
BASF has said that Zhanjiang, fuelled by economic growth in China, would ultimately become the company’s third-largest production site after its Ludwigshafen headquarters and a complex in Antwerp, Belgium.
BASF added that it expects just over two-thirds of the world’s chemical production to take place in China by 2030.