Global chemicals major BASF has inaugurated its massive new Verbund site in Zhanjiang, Guangdong Province, marking a major milestone in the company’s expansion in China’s chemical market.
Spanning four square kilometers, the site exemplifies the future of sustainable, efficient, and digital chemical production.
“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 Markus Kamieth, CEO of BASF, at the ceremony attended by government officials, customers, partners, and employees.
The Zhanjiang site employs over 2,000 people and will produce a wide range of basic chemicals, intermediates, and specialty chemicals for industries including transportation, consumer goods, electronics, home care, and personal care.
“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 added.
“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.”
With an investment of around €8.7 billion, the majority of products manufactured at Zhanjiang will serve local Chinese customers, fully supporting BASF’s “local-for-local” approach.
Stephan Kothrade, BASF Board Member and Chief Technology Officer, highlighted the site’s innovation and sustainability credentials: “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. It sets new benchmarks for sustainable chemical production in China and worldwide.”
The site leverages Verbund integration, process innovations, and renewable energy to cut CO₂ emissions by up to 50% compared with conventional petrochemical sites. Long-term green power agreements and an offshore wind farm ensure the site’s electricity is 100% renewable.
“Innovative technologies are also being used for the steam cracker – the starting point of various value chains at the Verbund site,” Kothrade said.
The world-scale flex-feed steam cracker, capable of processing naphtha and butane, produces 1 million tons of ethylene annually and is the first in the world with main compressors powered entirely by renewable energy.
BASF has already started up 18 plants, 32 production lines, and more than 70 products at Zhanjiang. “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.”
Announced in 2018, with foundation laid in 2019, the Zhanjiang site first launched an engineering plastics plant in 2022, followed by a thermoplastic polyurethane plant in 2024. Production in the first value chains of the Verbund and the rapid ramp-up of the steam cracker came in late 2025/early 2026.
BASF’s Zhanjiang site is the company’s seventh Verbund site worldwide and the third largest after Ludwigshafen, Germany, and Antwerp, Belgium, operating fully under BASF’s management.
