MOSCOW (MRC) -- BASF, which last year signed a non-binding memorandum of understanding with the Guangdong provincial government to establish a new "smart" Verbund site in Guangdong, said it has selected the city of Zhanjiang as the location of the proposed project, as per Apic-online.
BASF and the Guangdong government have now signed a framework agreement setting out further details for the planned site, which is expected to cost up to USD10-billion.
The project, to be implemented in phases, will include a 1-million-t/y steam cracker and several petrochemical units. The first plants could be completed around 2026 at the latest. This will be the company's second Verbund site in China.
A smart manufacturing concept is being further developed for the new site on the basis of cutting-edge technologies that maximize resource and energy efficiency and reduce environmental impact, BASF noted.
"By 2030, China's share of the global chemical production will increase to nearly 50%," said Martin Brudermller, chairman of the board of executive directors at BASF SE.
"Guangdong is a growing market for innovations from chemistry, and our new site will support customers in multiple industries."
As MRC informed before, in July 2018, BASF managed to wrap up a preliminary deal to build China's first wholly foreign-owned chemicals complex quite quickly, aided in part by trade tensions between Beijing and Washington. The proposed complex, worth some USD10 billion in investment to 2030, will be located in Guangdong, China's most populous province which had been worried about the impact of a US decision to heavily penalize telecom firm ZTE Corp, also based there.
BASF is the leading chemical company. It produces a wide range of chemicals, for example solvents, amines, resins, glues, electronic-grade chemicals, industrial gases, basic petrochemicals and inorganic chemicals. The most important customers for this segment are the pharmaceutical, construction, textile and automotive industries.
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