Negotiation held to land BASF project in Zhanjiang ASAP

The first senior negotiation between the Guangdong government and German chemical giant BASF was held on Aug 1, as the latter plans to invest $10 billion into the building of a Verbund chemical production site in the southern city of Zhanjiang.

Ma Xingrui, governor of Guangdong province, extended a warm welcome to the BASF delegation on behalf of the provincial Party committee and government. He lauded the project as a forward-looking and strategic move by BASF amid the new wave of opening-up in China.

Zhanjiang is a sub-center provincial city looking to build its Donghai Island into a world-class petrochemical industrial park. It has been blessed with unparalleled advantages in its geographical location, transport network and market influence.

Guangdong will set up a special task force to assist the company with procedures related to environmental impact assessment and land use. The two parties are expected to enhance communication and nail down project planning as soon as possible, said Ma.

BASF CEO Martin Brudermüller said that the company is committed to expanding its business in China and attaches great importance to the new Verbund site in Zhanjiang. The project is poised to become a world-class petrochemical industrial base relying on BASF's technical and talent resources.

Construction is expected to begin in 2023, with the first set of equipment beginning operation in 2026. Upon its completion by 2030, the new location will become the third largest BASF site in the world after Ludwigshafen in Germany and Antwerp in Belgium.