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BASF opens sustainable Verbund site in Zhanjiang, China

With the ceremonial inauguration of the Verbund site in Zhanjiang, BASF is setting new standards in sustainable chemical production. The site is fully powered by renewable electricity and strengthens the company’s market position in the world’s largest chemical market.

Aerial view of the BASF production site in Zhanjiang. Source: BASF

BASF has officially inaugurated its new Verbund site in Zhanjiang, Guangdong Province. Covering an area of four square kilometres and representing an investment of €8.7 billion, this is one of the company’s largest projects in China. The site is a trailblazer for sustainable and integrated chemical production and reflects BASF’s “Winning Ways” strategy. “Zhanjiang demonstrates what the future of chemistry looks like: efficient, digital and consciously sustainable,” stated Dr Markus Kamieth, Chairman of the Board of Executive Directors of BASF, at the opening ceremony.

More than 2,000 employees work at the site, producing a diversified portfolio – from basic chemicals and intermediates through to speciality chemicals for sectors such as transport, consumer goods and electronics. Through local production, BASF is consistently pursuing its “local-for-local” strategy to serve customers in China directly.

Sustainability through renewable energy and process innovations

The new Verbund site is fully powered by renewable electricity, enabling a reduction in CO₂ emissions of up to 50% compared with conventional petrochemical plants. Investments in an offshore wind farm and long-term green power purchase agreements secure the sustainable energy supply. A highlight is the innovative steam cracker with a capacity of one million tonnes of ethylene per year. It is the world’s first cracker whose main compressors (e-drives) are operated entirely with renewable energy. “The steam cracker enables the production of high-quality, low-carbon products and is designed to be flexible for various feedstocks,” explained Dr Stephan Kothrade, Member of the Board of Executive Directors and Chief Technology Officer of BASF.

In addition, BASF has already ramped up 18 production plants at the site, commissioned 32 production lines and offers more than 70 products. The integration and scaling within the Verbund concept ensure competitive costs, a reliable supply and a broad product portfolio from the Chemicals, Materials and Nutrition & Care segments.

Strengthening the market position in China

Zhanjiang is BASF’s seventh Verbund site worldwide and the third largest after Ludwigshafen and Antwerp. With this project, BASF underscores its long-term confidence in the world’s largest chemical market. “This investment demonstrates our innovative strength and sets new standards for sustainable chemical production in China and globally,” said Kothrade. BASF plans to drive innovation and transformation together with partners and customers in the region, capitalising on China’s economic dynamism.