BASF has reached a key project milestone with the start-up of the first plants at the new Verbund site in Zhanjiang. The aim is to reliably meet the growing demand in China and the Asia-Pacific region and to expand the regionally oriented "local for local" production.
Core facilities and schedule
The main construction phase comprises a steam cracker with 1 million tons of ethylene per year as well as several downstream units for petrochemicals and intermediates. Following the start of construction of the first units in 2020 and the final investment decision in July 2022, the project is on schedule according to the company. The entire core is scheduled to be commissioned by the end of 2025. The total investment amounts to around €8.7 billion and is under budget, according to the company.
Focus on regional markets and sustainability
BASF intends to supply customers from various industries in the region with modernized basic chemicals capacities. The site is designed to provide high-quality chemical products with a reduced carbon footprint; the company does not provide specific comparative figures in the press release.
Importance for surface technology
Petrochemical raw materials and intermediates are essential for paint, coating and adhesive applications. Additional local capacities can shorten delivery routes and increase supply security in Asia - relevant for internationally producing manufacturers of coating raw materials and for users with production facilities in the region.