BASF to invest €10bn in China

German chemical company BASF announced that it is going to build a new integrated (verbund) chemical plant in China. This plant, which costs around €10bn, is expected to be put into operation by 2026. The venue is yet to be decided, but rumor has it that it will be built on the Zhanjiang coast due to an easy access to pipelines and refineries. After the opening, it would become BASF’s third most important plant after those of Ludwigshafen and Antwerp, and the second Verbund to be built in China after Nanjing plant, which was created in cooperation with partner Sinopec. The announcement underlined the major role played by China in the global chemical market; indeed, over 40% of global capacity is concentrated in China, where BASF in 2017 generated €2.2bn, i.e. twice the revenue of 2016. BASF shares (Frankfurt) rose over 2% after the announcement.

 

(Source: FAZ)