BASF has formally unveiled what it is describing as a 'world-scale' integrated chemical production site located in Zhanjiang, Guangdong Province, China. Work on the “Verbund” site, which required an investment of €8.7 billion and covers an area of four square kilometres, began during 2019, with completion scheduled for 2030. Plants producing engineering plastics and thermoplastic polyurethane were started up in 2022 and 2024 respectively.
The site which represents BASF’s seventh Verbund site, is centred around a steam cracker which is said to be the first in the world to use 100% renewable energy to drive its main compressors (eDrives). The cracker has an ethylene capacity of 1 million tonnes/year, and is designed to process multiple types of feedstocks, such as naphtha and butane. Across the site 18 plants and 31 production lines are now operational, and this supports a portfolio of more than 70 products, BASF says.
The company adds that carbon dioxide emissions are 50% lower than conventional petrochemical sites. BASF attributes this to the use of its Verbund integration, process innovation, and renewable energy. Long-term green power purchase agreements and investments in an offshore windfarm also support the site’s 100% renewable supply of electricity, the company said.
“Zhanjiang shows what the future of chemistry looks like: efficient, digital and sustainable by design,” said Dr Markus Kamieth, BASF CEO. "Completing a project of this magnitude and complexity on time and under budget is remarkable," he said.
The site will produce a diversified portfolio of products that includes basic chemicals, intermediates and speciality chemicals for transportation, consumer goods, electronics, home care and personal care industries. The majority of the products will directly serve customers in China, which BASF says aligns with its global “local for local approach.”
BASF explains that the Zhanjiang Verbund site is built and operated under its sole responsibility and is its third largest site worldwide, following its sites in Ludwigshafen, Germany and Antwerp, Belgium.
While BASF has a strong presence in Asia Pacific, with the company serving nearly all key industries across the region, the company says that “it is still underrepresented in the fastest growing and largest market of the future.”
BASF said that, as of 2025, Greater China accounted for about 50% of the global chemical market and represented 14% of its global sales. Looking at continued investment, the company has said that 20% of its global capex for the period 2026 to 2029 will flow into Asia Pacific.
Further reading:
- AstraZeneca plans $15 billion investment in China
- BASF starts up first commercial-scale recycled polyamide 6 plant
- Life sciences and pharma priorities in 2025: M&A, AI and China
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