German chemical giant BASF on Saturday officially launched its largest-ever investment project in China, with investment estimated to reach up to 10 billion U.S. dollars upon completion.
Located in the city of Zhanjiang in Guangdong Province -- China's forefront of reform and opening-up, the BASF smart Verbund project will initially include plants to produce engineering plastics and TPU serving a range of key industries.
As the first wholly foreign-funded project in China's heavy chemical industry, the Verbund project, with the first-stage units expected to come on stream in 2022, is a demonstration of the chemical behemoth's ambition to expand further into China, the world's largest market for chemical products.
Donghai Island, in the eastern bay of the Leizhou Peninsula at the southernmost tip of the Chinese mainland, was once a remote and unknown island in the South China Sea. The 286-square-km island only has a sparse population of 270,000 inhabitants. Yet the island has been chosen as the bearer of BASF's ambition to step further into China and Asia.
In the next decade, BASF will build an integrated site with an area of about 9 square km. The site will include steam cracking units with an annual production capacity of 1 million tonnes of ethylene and more than 30 production units that offer consumer market-oriented products and solutions.
These units are concentrated in downstream industries such as petroleum refining byproducts, chemical products and chemical byproducts.
BASF has been deeply involved in the Chinese market for many years. In 2018, BASF sold products worth more than 7.3 billion euros to customers in Greater China and had more than 9,000 employees in the region.
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