LUDWIGSHAFEN (dpa-AFX) - German chemicals giant BASF (BFA.L, BASFY.PK) Thursday said it has signed a framework agreement with Guangdong Provincial Government in China, to establish Verbund site in Zhanjiang, China.
Following the signing of the Memorandum of Understanding in July 2018, BASF has selected the city of Zhanjiang as the location for its second Verbund site in China.
The total investment is estimated to reach up to $10 billion and will be implemented in phases. The project will include a wholly-owned steam cracker with a planned capacity of 1 million metric tons of ethylene per year and several plants for consumer-oriented products and solutions.
BASF's new integrated site is expected to contribute to the industrial transformation of Guangdong.
According to the Framework Agreement, fundamental circular economy concepts will be incorporated into the new Verbund site in Zhanjiang, to support customers in the region with sustainably produced solutions.
The new BASF Verbund site will benefit from Zhanjiang's natural resources, a deep-water port, excellent transportation links, and an engaged workforce.
Globally, BASF currently operates six Verbund sites. The Verbund site in Nanjing, China, established in 2000, is a 50:50 joint venture with Sinopec.
Copyright RTT News/dpa-AFX
© 2019 AFX News
