Zhanjiang
Who we are

Who we are

Our engagement in China

BASF has been conducting business in Asia Pacific for a long time. The success story began back in 1885 with the trade in textile dyes. Since then, our commitment has grown and diversified steadily. Today, BASF serves nearly all key industries across the region. With further investments in China, we are expanding our excellent position and accelerating BASF’s profitable growth in the world’s largest chemical market.

The Asia Pacific region is the main growth driver for the chemical industry and will continue to gain in importance. In 2000, the regions EMEA, North and South America, and Asia Pacific each accounted for about one-third of the global chemical market. By 2030, Asia Pacific will represent around 70 percent of the global chemical market with more than half of the global chemical industry sales and about three quarters of global chemical production growth coming from China alone. That is why we are investing.

Asia Pacific is the number one growth engine for the chemical industry. The resulting opportunities make the region highly attractive for BASF and its growing Asian footprint.”
Markus Kamieth, Member of the Board of Executive Directors, BASF SE

Stephan Kothrade

Member of the Board of Executive Directors, BASF SE

Asia Pacific: Powerhouse of the chemical industry

Considering the market development, BASF is still underrepresented in the fastest growing and largest chemical market of the future. In 2023, about a quarter of our sales came from Asia Pacific. Greater China accounted for less than 15 percent of BASF’s global sales, but for roughly 50 percent of the global chemical market. That is why we are strengthening our foothold in China.

40 percent of our global capital expenditures planned for the period 2024 to 2027 will flow into the Asia Pacific region to support our customers having a strong local production. In addition to larger projects in Southeast Asia, such as at our Verbund site in Kuantan, Malaysia or at sites in Singapore, our focus is on China. For example, we are expanding our Verbund site in Nanjing and our battery materials value chain with the joint venture BASF Shanshan. We are also building a new Verbund site in Zhanjiang (Guangdong province) in South China, which represents the largest foreign investment in BASF's history. Upon its completion expected in 2030, Zhanjiang will be our third largest Verbund site after Ludwigshafen, Germany, and Antwerp, Belgium.

Growing local demand: Producing in China for China

Our investments: Based on robust analyses of opportunities and risks

A clear compass: Corporate values and international standards

Dialogue and collaboration: Basis for solving global challenges

Our China business
With major sites in Shanghai, Nanjing, Chongqing and Zhanjiang, as well as numerous smaller sites throughout the country, BASF has a strong production, sales and innovation base in Greater China. In 2023, BASF posted sales of approximately €9.4 billion to customers in Greater China and employed 12,115 people.
default
The Zhanjiang Verbund site
The Zhanjiang Verbund site is currently BASF's largest investment project. Upon completion in 2030, Zhanjiang will be our third-largest Verbund site after Ludwigshafen/Germany and Antwerp/Belgium. In total, BASF will invest up to €10 billion. By utilizing state-of-the-art digital technologies, the highest production and safety standards and innovative supply concepts, the new Verbund site will be a role model for smart and sustainable production.

BASF in China - a brief history

1885 - First delegate

BASF's activities in Greater China began in 1885, although it did not have its own production facilities. The trading company Jebsen & Co. secured the representation of the Badische Anilin- und Sodafabrik for Hong Kong and southern China and from then on sold BASF products, in particular textile dyes such as synthetic indigo. The partnership between BASF and Jebsen & Co. was to last for over 80 years and bring profit to both.

1969 - First own production in Greater China

As early as 1962, BASF declared a general interest in building production facilities in Greater China. The first investment was realized in 1969, when BASF founded a subsidiary in Taiwan. This entity bought into Cheng Kuang Chemical Co. Ltd. which operated a formulation factory for crop protection products in Taipei. The joint venture became the nucleus of BASF’s growth in Taiwan: In 1989, it was renamed BASF Taiwan Ltd.

1988 - First joint venture in Mainland China

In the 1980s the time had come for direct investment into production sites in Mainland China. In 1988, BASF founded its first joint venture in Mainland China: Shanghai Gaoqiao BASF Dispersions Co. Ltd., which as BASF’s longest-standing production facility in China makes styrene-butadiene dispersions for paper coating and carpets. Other joint ventures followed.

2005 - First Verbund site

In 2005, BASF inaugurated its first Verbund site in China, the Nanjing Verbund site - jointly run by BASF and China Petroleum & Chemical Corp. (Sinopec). The initial joint investment by both partners amounted to $2.9 billion. Following initial key expansions in 2012 and 2014, an ongoing expansion phase is scheduled for completion before the end of 2023.

2006 - Further investments

Since 2006, BASF continuously increased production capacities at various sites. These include an integrated isocyanate production site at the Shanghai Chemical Industrial Park in Caojing. In order to serve the growing market in China, BASF constructed another large MDI plant in Chongqing, which started production in 2015.

2012 - First Innovation Campus

In 2012, BASF inaugurated the Innovation Campus Shanghai, located at the BASF Shanghai Pudong Innovation Park. Combining technical development capabilities with industrial design expertise, it serves the innovation demand of almost all major industries. The third expansion phase was inaugurated in 2023, with new laboratories for advanced materials and systems as well as for chemical engineering.

2019 - Second Verbund site

In 2019, BASF officially launched its smart Verbund project in Zhanjiang, Guangdong province, China, and commenced building its first plants. The total investment is up to €10 billion by 2030. Upon completion, it will be operated under the sole responsibility of BASF as the third-largest Verbund site after Ludwigshafen, Germany, and Antwerp, Belgium - and a role model of smart and sustainable production both in China and globally.

2021 - Foundation BASF Shanshan

In 2021, BASF and Shanshan have formed the joint venture “BASF Shanshan Battery Materials Co., Ltd.”. It focuses on the rapidly growing electric vehicle (EV) market, while continuously serving global consumer electronic and energy storage segments. It has sites in the provinces of Hunan and Ningxia. A first expansion of capacities is underway. The new lines in Changsha gradually started commissioning from the fourth quarter in 2022.

2022 - First plant at Zhanjiang

In 2022, BASF inaugurated the first plant at the Zhanjiang Verbund site. It supplies engineering plastics compounds to customers, particularly in the automotive and electronics industries. With the next plant producing thermoplastic polyurethanes (TPU) to come on stream by 2023, the focus in Zhanjiang is to build the core of the Verbund, including a steamcracker along with downstream plants for the production of petrochemicals and intermediates, among others.

2023 - First wind farm

In 2023, BASF and Mingyang agreed to jointly construct and operate an offshore wind farm in South China with a total installed capacity of 500 megawatts. This is the first Sino-German offshore wind farm project involving development, construction and operation. The majority of the power generated will be used to supply the BASF Zhanjiang Verbund site.

A look at 130 years of BASF history in China (1885 - 2015)

To mark BASF's 150th anniversary, in 2015 the book "Breaking New Ground. The History of BASF in China from 1885 to Today" was published. In it, author Michael Grabicki, for many years (until 2012) head of Corporate Media Relations at BASF, traces 130 years of BASF's development in China.

Breaking New Ground. The History of BASF in China from 1885 to Today
Hardcover (2015): 382 pages
HOFFMANN UND CAMPE VERLAG
ISBN: 978-3-455-50363-0