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