BASF Invests in New Polyethylene Facility in Zhanjiang to Address Chinese Market Needs

BASF has broken ground on a polyethylene (PE) plant at its Verbund site in Zhanjiang, China. The new plant with a capacity of 500,000 metric tons of PE annually is scheduled to start up in 2025.

(IN BRIEF) BASF has started construction on a polyethylene (PE) plant in Zhanjiang, China. The plant, scheduled to be operational by 2025, will have an annual capacity of 500,000 metric tons of PE. This investment aims to meet the increasing demand for PE in China, where it is used in various applications such as storage tanks, pipelines, packaging, and films. The new facility highlights BASF’s commitment to serving the Chinese market and strengthening its position as a key supplier in the region.

(PRESS RELEASE) HONG KONG SAR, China, 20-Jun-2023 — /EuropaWire/ — BASF (ETR: BAS), the world’s largest chemical producer, has officially begun construction on a polyethylene (PE) plant at its Verbund site in Zhanjiang, China. The state-of-the-art facility, boasting an annual capacity of 500,000 metric tons of PE, is strategically positioned to meet the rapidly growing demand in the Chinese market. The plant is projected to commence operations in 2025.

“China’s demand for PE has experienced rapid growth and is going to outpace the rest of the world,” said Bir Darbar Mehta, Senior Vice President of Petrochemicals Asia Pacific at BASF. “With the groundbreaking ceremony, BASF will enter the PE market in China via a competitive production footprint in its fully integrated production site in Zhanjiang, catering to our customers in the consumer goods, packaging, construction and transportation industries.”

“Strategically located close to our customers, the Zhanjiang Verbund site is fully backward integrated to provide them with high quality and reliable PE products for a wide range of durable applications, including pipes, specialty films and blow molded parts for household and industrial chemical containers, especially in the South China market,” said Bejoy Chandran, Vice President of Basic Business Management & China Sales Management, Petrochemicals Asia Pacific at BASF.

Polyethylene, a versatile thermoplastic polymer derived from ethylene, offers a lightweight and adaptable material for various applications. From heavy-duty storage tanks and pipelines to flexible packaging and films, polyethylene is widely used across industries.

The new plant in Zhanjiang reaffirms BASF’s commitment to enhancing its production capabilities and catering to the evolving needs of customers in China. With this significant investment, BASF aims to strengthen its position as a key supplier in the region and contribute to the development of China’s growing industrial landscape.

About BASF’s Petrochemicals division

The Petrochemicals division is the starting point for BASF’s petrochemical-based value chains globally. We operate a highly competitive asset base with best-in-class technologies and set the benchmark in safety, sustainability, operational excellence and cost competitiveness. With six Verbund sites and several major production sites, we are close to our customers and present in the largest chemical markets worldwide. The division supplies various value chains across the company and a broad range of customer industries with high-quality chemicals, putting our customers in the center of everything we do and contributing to the organic volume growth of BASF. Our portfolio includes cracker products, industrial gases, acrylics, superabsorbent polymers, styrenic foams, alkylene oxides, glycols, alcohols, solvents and plasticizers. In 2022, the Petrochemicals division generated sales to third parties of about €10.6 billion. Further information is available online at http://petrochemicals.basf.com.

About BASF

At BASF, we create chemistry for a sustainable future. We combine economic success with environmental protection and social responsibility. More than 111,000 employees in the BASF Group contribute to the success of our customers in nearly all sectors and almost every country in the world. Our portfolio comprises six segments: Chemicals, Materials, Industrial Solutions, Surface Technologies, Nutrition & Care and Agricultural Solutions. BASF generated sales of €87.3 billion in 2022. BASF shares are traded on the stock exchange in Frankfurt (BAS) and as American Depositary Receipts (BASFY) in the United States. Further information at www.basf.com.

Media contacts:

Yan Ng
Petrochemicals Communications Asia Pacific
Hong Kong
+852 2731 7032
yan.ng@basf.com

Charlotte Busscher
+49 621 60-52311
+49 174 3494288
charlotte.busscher@basf.com

SOURCE: BASF SE