Monday, August, 19, 2019 07:05:47

BASF stated that the $10 billion would be invested in phases, which includes several plants for consumer-oriented products as well as a steam cracker with a yield of 1 million tons every year.

BASF, the German chemicals giant, has recently announced that the company has selected the port city of Zhanjiang in Guangdong, the southern Chinese province, as a site for its new $10 billion petrochemicals complex.

Apparently, this move comes along the heels of BASF signing a memorandum of understanding (MoU), in October, with Sinopec Corp. of China. The MoU was allegedly signed for building a steam cracker in the eastern city of Nanjing, wherein the company had marked its first huge investment in China in an alliance with the Chinese state energy corporation around two decades ago.

The company inked a so-called ‘framework deal’, recently, in an attempt to take the project beyond the MoU which was previously agreed. A plot of land of 9 square-km would reportedly be allocated for the project.

The company had previously stated that this facility, the first chemicals complex wholly-owned by a foreign company in China, would be in this province but had not revealed the exact location.

Martin Brudermüller, Chairman of BASF, said in a statement that the global share of chemical production of China is anticipated to grow to around 50 percent by 2030. Brudermüller further mentioned that Guangdong is an expanding market for innovations from chemistry and the new site of BASF would help to support customers from a number of industries.

Sources familiar with the matter highlighted that People’s Republic of China is allowing larger access to the country’s massive chemicals markets for local independents and global majors as it seeks to feed fast-growing demand for adhesives, coatings and plastics from industries like consumer electronics.