BASF chooses Chi­nese port as site for US$10bil petchem com­plex

The Star Malaysia - StarBiz - - Foreign News -

SIN­GA­PORE: Ger­man chem­i­cals gi­ant BASF on Thurs­day said it had se­lected the port city of Zhan­jiang in the south­ern Chi­nese prov­ince of Guang­dong as the site for its US$10bil petro­chem­i­cals com­plex.

The com­pany had pre­vi­ously said that the fa­cil­ity, China’s first wholly for­eign-owned chem­i­cals com­plex, would be in the prov­ince with­out giv­ing the ex­act lo­ca­tion.

China is al­low­ing greater ac­cess to its mas­sive chem­i­cals mar­kets for global ma­jors and lo­cal in­de­pen­dents as it looks to feed fast-grow­ing de­mand for plas­tics, coat­ings and ad­he­sives from in­dus­tries such as con­sumer elec­tron­ics.

“By 2030, China’s share of global chem­i­cal pro­duc­tion will in­crease to nearly 50 %,” BASF chair­man Martin Bru­d­er­muller said in a state­ment is­sued yes­ter­day.

“Guang­dong is a grow­ing mar­ket for in­no­va­tions from chem­istry, and our new site will sup­port cus­tomers in mul­ti­ple in­dus­tries.”

The com­pany on Wed­nes­day signed a so-called ‘frame­work deal’ tak­ing the project be­yond the ‘me­moran­dum of un­der­stand­ing’ that was pre­vi­ously agreed.

The US$10bil will be in­vested in phases in­clud­ing build­ing a one mil­lion tonne-peryear steam cracker and sev­eral plants for con­sumer-ori­ented prod­ucts, BASF said. — Reuters

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