BASF, Sinopec to ex­pand JV and ex­plore bat­tery ma­te­ri­als

China Daily European Weekly - - Business - By CHEN YINGQUN cheny­ingqun@chi­nadaily.com.cn

Ger­man chem­i­cal gi­ant BASF and China Petro­chem­i­cal Corp — also known as Sinopec — one of the coun­try’s lead­ing oil and gas com­pa­nies, signed a mem­o­ran­dum of un­der­stand­ing on Oct 29 to fur­ther strengthen their part­ner­ship in up­stream and down­stream chem­i­cal pro­duc­tion.

The part­ners in­tend to build an ad­di­tional steam cracker and ex­pand their joint ven­ture, BASF-YPC. A joint fea­si­bil­ity study for the project is ex­pected to be fin­ished this year. Crack­ing refers to break­ing down com­plex or­ganic mol­e­cules.

In ad­di­tion, the two com­pa­nies say they will jointly ex­plore new busi­ness op­por­tu­ni­ties in China’s fast-grow­ing bat­tery ma­te­ri­als mar­ket.

Ac­cord­ing to the mem­o­ran­dum, BASF-YPC will take a 50 per­cent stake in a se­cond steam cracker with a ca­pac­ity of 1 mil­lion met­ric tons of eth­yl­ene per year. Sinopec will take the other 50 per­cent.

Both BASF-YPC and Sinopec will have ac­cess to all out­put from the new steam cracker to de­velop down­stream prod­ucts.

The ba­sic chem­i­cals pro­vided by the new steam cracker will also en­able BASF and Sinopec to ex­pand pro­duc­tion ca­pac­ity at BASF-YPC’s in­te­grated site in Nan­jing, Jiangsu prov­ince.

Plants are in­ter­con­nected at the site to uti­lize prod­ucts, byprod­ucts and en­ergy in the most ef­fi­cient way to save costs and min­i­mize en­vi­ron­men­tal im­pact, ac­cord­ing to the com­pa­nies.

“This ad­di­tional in­vest­ment in a new steam cracker and the ex­pan­sion of our BASF-YPC joint ven­ture un­der­line the strong part­ner­ship be­tween Sinopec and BASF, and the com­mit­ment to our cus­tomers in China,” says Martin Bru­d­er­mueller, chair­man of the ex­ec­u­tive board of di­rec­tors at BASF.

Dai Houliang, chair­man and pres­i­dent of Sinopec, says: “With the strength­ened co­op­er­a­tion be­tween Sinopec and BASF, we will pro­vide high-qual­ity chem­i­cals that can en­hance qual­ity of life for gen­eral con­sumers. We aim to cre­ate fur­ther value by ex­tend­ing this part­ner­ship.”

The de­ci­sion to jointly ex­plore busi­ness op­por­tu­ni­ties in bat­tery ma­te­ri­als comes at a time when the ris­ing im­por­tance of al­ter­na­tive en­ergy in China, es­pe­cially in the au­to­mo­tive in­dus­try, is lead­ing to a surge in de­mand for in­no­va­tive bat­tery ma­te­ri­als for a range of ap­pli­ca­tions.

BASF-YPC was founded in 2000, with to­tal in­vest­ment to date of about $5.2 bil­lion (£4.1 bil­lion; 4.6 bil­lion eu­ros).

The in­te­grated petro­chem­i­cals site in Nan­jing pro­duces about 3 mil­lion met­ric tons of chem­i­cals and poly­mers for the Chi­nese mar­ket an­nu­ally.

The prod­ucts serve rapidly grow­ing de­mand in mul­ti­ple in­dus­tries in­clud­ing agri­cul­ture, con­struc­tion, elec­tron­ics, phar­ma­ceu­ti­cals, hy­giene, au­to­mo­biles, and chem­i­cal man­u­fac­tur­ing.

BASF-YPC posted sales of about 21 bil­lion yuan in 2017 and em­ployed 1,882 peo­ple.

“With the strength­ened co­op­er­a­tion be­tween Sinopec and BASF, we will pro­vide high-qual­ity chem­i­cals that can en­hance qual­ity of life for gen­eral con­sumers.” DAI HOULIANG chair­man and pres­i­dent of Sinopec

PHOTOS PRO­VIDED TO CHINA DAILY

Joint ven­ture BASF-YPC’s in­te­grated plant in Nan­jing, Jiangsu prov­ince.

Dai Houliang (left), chair­man and pres­i­dent of Sinopec, and Martin Bru­d­er­mueller, chair­man of the ex­ec­u­tive board of di­rec­tors at BASF, sign a mem­o­ran­dum of un­der­stand­ing to ex­pand the com­pa­nies’ joint ven­ture in China.

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