Construction starts on BASF's Zhanjiang smart project

Stephan Kothrade, president of Asia Pacific Functions and president and chairman of Greater China BASF, said Zhanjiang is a perfect location for BASF to further strengthen the company's footprint of local production in China. "The smart Verbund site will form a solid foundation for a world-class industrial cluster in Zhanjiang and establish stronger business connections between South China and other Asian countries," he said.

By 2022, the new engineering plastics compounding plant will supply an additional capacity of 60,000 metric tons per year in China, bringing BASF's total capacity of these products in Asia Pacific to 290,000 metric tons per year. The new capacity will enable BASF to meet the growing demand of its customers, particularly in the automotive, electronics and new energy vehicle industries.

BASF plans to implement a comprehensive smart manufacturing concept at the Verbund site based on cutting-edge technologies. The new site will utilize automated packaging, high-tech control systems and automated guided vehicles.

With the Zhanjiang Verbund site, BASF will also contribute to the advancement of the local community. The company is forming strategic partnerships with several local technical institutions to develop young technical talent.

BASF Integrated Site (Guangdong) Co. Ltd, BASF's new wholly-owned subsidiary, has also been officially formed. This entity will oversee the operations of the new Verbund site, underlining BASF's commitment to the China market.

The Verbund site in Guangdong will be BASF's largest investment, estimated at up to $10 billion upon completion, and would be operated under the sole responsibility of BASF. The integrated value chain will connect upstream and downstream plants, from basic chemicals to more consumer-oriented products and solutions, serving growth sectors like consumer goods and transportation.

The site would ultimately be the third-largest BASF site worldwide, following Ludwigshafen, Germany and Antwerp, Belgium. The first plant producing engineering plastics compounds is expected to be operational by 2022, and the whole Verbund site is planned to be completed by 2030.

Xinhua contributed to this story.