BASF launches world-scale Verbund site in China to strengthen chemical production

BASF officially inaugurated its newly built world-scale Verbund site in Zhanjiang, Guangdong Province, southern China. Covering an area of approximately four square kilometres, the site represents more than just a major BASF investment, highlighting the company’s long-term commitment to China’s growing chemical market.

“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.

“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.

“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 SE, 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.

Most of the products manufactured at the Zhanjiang site will serve customers directly in China, supporting BASF’s global “local-for-local” strategy. The project was completed on schedule and significantly below the original budget, with a total investment of around €8.7 billion.

The facility has an annual ethylene production capacity of around 1 million tonnes and is the world’s first steam cracker equipped with main compressors (e-drives) powered entirely by renewable energy, enabling the production of high-quality, low-CO₂ products. The world-scale flex-feed steam cracker is designed to process multiple feedstocks, including naphtha and butane.

BASF has successfully started operations at 18 plants and 32 production lines, producing more than 70 products. Leveraging its proven Verbund concept with integrated value chains, the company offers a broad and diversified portfolio across the Chemicals, Materials, and Nutrition & Care segments. This level of integration and scale enables competitive cost positions, significantly lower CO₂ emissions, and reliable supply across 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 first announced the Zhanjiang project in 2018 and laid the foundation stone the following year. Operations at the site began with an engineering plastics plant in 2022, followed by a thermoplastic polyurethane facility in 2024. At the turn of 2025/2026, the company started production in the initial Verbund value chains and ramped up the steam cracker in record time.

The Zhanjiang integrated site is BASF’s seventh Verbund site globally and its third largest, after Ludwigshafen in Germany and Antwerp in Belgium. The facility will be operated entirely under BASF’s ownership and management. BASF has operated in Greater China for over 140 years and today serves almost all key industries in the region. The company has a strong production, sales, and innovation footprint in China, with major sites in Shanghai, Nanjing, Chongqing, and Zhanjiang, as well as numerous smaller facilities nationwide. In 2025, BASF recorded sales of approximately €8.2 billion in Greater China and employed nearly 13,000 people.

Source: BASF