Technological watch

BASF advances $10bn cracker project in China

BASF SE and the Chinese province of Guandong have entered into a framework agreement for the establishment of a $10bn (€8.5m) chemical plant in China.

The agreement was signed by BASF chairman Martin Brudermüller and Lin Shaochun, vice governor of Guangdong province, in Ludwigshafen, Germany on 9 Jan.

The German chemical giant has selected the city of Zhanjiang, at the heart of southwestern Guangdong, as the location for its second ‘Verbund', or integrated value chain site in China.

“By 2030, China’s share of the global chemical production will increase to nearly 50%. Guangdong is a growing market for innovations from chemistry, and our new site will support customers in multiple industries,” said Brudermüller.

BASF intends to incorporate “fundamental circular economy concepts” into the new Verbund site in Zhanjiang, to deliver “sustainably-produced” solutions, including the conservation of resources through the use of waste and byproducts as raw materials.

A smart manufacturing concept is being further developed for the new site, employing “cutting-edge technologies” to maximise resource and energy efficiency and reduce environmental impact. BASF did not further elaborate on the technology but said it had allocated around 9 square kilometres of land for the project. 

The complex will be fully operated by BASF. Construction is set to be completed by 2030, with the first plants scheduled for start-up by 2026.

In the initial phase, the project would consist of petrochemical plants, including a steam cracker with a planned capacity of 1 million tonnes of ethylene per year.

Later, the Ludwigshafen-based company is planning to build plants for “more consumer-oriented” products and solutions, for markets such as transportation or consumer goods.

Ultimately, BASF expects the site to be its third-largest worldwide, following Ludwigshafen, Germany, and Antwerp, Belgium.

Publication date: 10/01/2019

This project has been co-funded with the support of the LIFE financial instrument of the European Union [LIFE17 ENV/ES/000438] Life programme

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Last update: 2020-07-14