Sustainable Chemical Production BASF Inaugurates 8.7 Billion Euro Verbund Site in China

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BASF has recently inaugurated its new Verbund site in Zhanjiang, China. The 8.7 billion project sets a new benchmark for sustainable chemical production in China and across the globe.

Ludwigshafen/Germany – BASF recently celebrated the official inauguration of its newly built, world-scale Verbund site in Zhanjiang, Guangdong Province in southern China. Covering an area of around four square kilometers, it is more than a major BASF project in the chemical growth market of China. “Zhanjiang shows what the future of chemistry looks like: efficient, digital and sustainable by design. The site showcases a smart integrated Verbund structure on an industrial scale,” said Dr. Markus Kamieth, CEO of BASF, at the ceremony attended by representatives from government, customers, business partners and employees.

At the Zhanjiang site, BASF employs over 2,000 people and will produce a diversified portfolio that includes basic chemicals, intermediates and specialty chemicals for the transportation, consumer goods, electronics, home care and personal care industries.

“Bringing this site to life took real ownership, speed and an exceptional level of commitment from our BASF team. Completing a project of this magnitude and complexity on time and under budget is remarkable. I want to thank everyone involved both at the site and worldwide who made this possible,” Kamieth said. “This investment shows confidence in the world’s largest chemical market in the long run and will be an important element of our ‘Winning Ways’ strategy,” he added. The majority of the products manufactured in Zhanjiang will directly serve customers in China, fully aligning with BASF’s global “local for local” approach. The project was completed on schedule and well below the original budget, with an investment of around 8.7 billion euros.

“I am proud of BASF’s innovative strength as the basis for the start-up of the most sustainable integrated chemical site in China, and the successful ramp-up of the steam-cracker in record time,” emphasized Dr. Stephan Kothrade, member of the Board and Chief Technology Officer of BASF, who is responsible for the Asia Pacific region. “It sets new benchmarks for sustainable chemical production in China and worldwide,” Kothrade added.

By using Verbund integration, process innovations and renewable energy, CO₂ emissions at the site can be reduced by up to 50 percent compared with a conventional petrochemical site. Long-term green power purchase agreements and investments in an offshore wind farm enable the site’s electricity supply to be 100 percent renewable. “Innovative technologies are also being used for the steam cracker – the starting point of various value chains at the Verbund site,” Kothrade said. It has a capacity of 1 million tons of ethylene per year and is the world’s first cracker equipped with main compressors (e-drives) powered by 100 percent renewable energy, supporting the production of high-quality, low-CO2 products. The world-scale flex-feed steam cracker is designed to process multiple types of feedstocks, such as naphtha and butane.

BASF has successfully started up 18 plants, 32 production lines, and is producing more than 70 products. With the proven Verbund concept with long value chains, BASF offers a broad, highly diversified product portfolio from the segments Chemicals, Materials and Nutrition & Care. This integration and scale enable competitive cost positions, significantly lower CO₂ emissions and reliable supply to serve multiple end markets. “This makes us an attractive partner for our customers in China,” said Haryono Lim, President, Mega Projects Asia, BASF. “Together with customers and partners, we will drive innovation and transformation forward in one of China’s most economically dynamic regions,” he added. Thus, the site provides an important platform for BASF’s future growth in China.

BASF announced the Zhanjiang project in 2018 and laid the foundation stone the following year. The first production plant to begin operation at the Zhanjiang site was for engineering plastics in 2022; it was followed by a thermoplastic polyurethane plant in 2024. At the turn of 2025/2026, BASF began production in the first value chains in the Verbund and successfully ramped up the steam cracker in record time.

The Zhanjiang integrated site is BASF’s seventh Verbund site worldwide and the third largest after Ludwigshafen, Germany, and Antwerp, Belgium. It will be operated solely under BASF’s responsibility.

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