BASF commences its $10bn smart Verbund project in Zhanjiang, China

BASF commences its $10bn smart Verbund project in Zhanjiang, China
Today BASF officially commenced its smart Verbund project in Zhanjiang Guangdong province China Ma Xingrui middle right Deputy Party Secretary of Guangdong provincial CPC Governor of Peoples Government of Guangdong Province Ning Jizhe ninth from right Deputy Director of National Development and Reform Commission Secretary of Party Leadership Group and Director of the National Bureau of Statistics Dr Clemens von Goetze ninth from left German Ambassador to China Li Shousheng seventh from right Chairman Secretary of the Party Commission of China Petroleum and chemical Federation Zheng Renhao sixth from right Party Secretary of the CPC Zhanjiang Committee and Director of the Standing Committee of Zhanjiang Peoples Congress Dr Martin Brudermueller middle left Chairman of the Board of Executive Directors BASF SE attended with government officials and BASF executives the commencement ceremony
Published: 26 November 2019 - 3 a.m.
By: Martin Menachery
BASF officially launched its smart Verbund project in Zhanjiang, Guangdong province, China, and commenced building its first plants. It marks a milestone of the company’s $10bn investment project announced in July 2018. The first plants will produce engineering plastics and thermoplastic polyurethane (TPU) to serve the increasing needs of various growth industries in the southern China market and throughout Asia.

“We are pleased to see our mega-investment project in China is progressing,” said Dr Martin Brudermüller, chairman of the board of executive directors, BASF SE. “We are determined to support our customers in southern China drive growth with innovative products and sustainable solutions.”

By utilising the latest digital technologies and applying the highest safety standards, the new Verbund site will be a role model for sustainable production contributing to the development of a circular economy in China,” added Brudermüller.

“Zhanjiang is a perfect location for BASF to further strengthen our footprint of local production in China,” said Dr Stephan Kothrade, president, Asia Pacific Functions, and president and chairman, Greater China, BASF. “The smart Verbund site will form a solid foundation for a world-class industrial cluster in Zhanjiang and establish stronger business connections between South China and other Asian countries.

By 2022, the new engineering plastics compounding plant will supply an additional capacity of 60,000 metric tonnes per year in China, bringing BASF’s total capacity of these products in Asia Pacific to 290,000 metric tonnes per year. The new capacity will enable BASF to meet the growing demand of its customers, particularly in the automotive, electronics and new energy vehicles (NEV) industries.

BASF plans to implement a comprehensive smart manufacturing concept at the Verbund site based on cutting-edge technologies. The new site will utilise automated packaging, high-tech control systems, and automated guided vehicles.

With the Zhanjiang Verbund site, BASF will also contribute to the advancement of the local community. The company is forming strategic partnerships with several local technical institutions to develop young technical talents.

BASF Integrated Site (Guangdong) Co, BASF’s new wholly-owned subsidiary, has also been officially formed. This entity will oversee the operations of the new Verbund site, underlining BASF’s commitment to the China market.

BASF signed the first memorandum of understanding for the Verbund site with the Guangdong Provincial Government in Berlin, Germany, in July 2018. In January 2019, the company signed a framework agreement setting out further details of the plan. The Verbund site in Guangdong would be BASF’s largest investment, estimated up to $10bn upon completion, and would be operated under the sole responsibility of BASF.

The integrated value chain will connect upstream and downstream plants from basic chemicals to more consumer-oriented products and solutions, serving growth sectors like consumer goods and transportation. The site would ultimately be the third-largest BASF site worldwide, following Ludwigshafen, Germany, and Antwerp, Belgium. The first plant producing engineering plastics compounds is expected to be operational by 2022, and the whole Verbund site is planned to be completed by 2030.

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