The push to decarbonize the plastics industry is gaining momentum as BASF and UPC Technology Corporation (UPC) strengthen their long-standing partnership to accelerate the adoption of lower-carbon solutions across the plasticizer value chain.

 

The two companies have signed a strategic Letter of Intent (LoI) covering BASF’s LowPCF products, marking a new phase in their collaboration and reinforcing their shared ambition to help the chemical industry navigate growing sustainability demands without compromising competitiveness.

 

The agreement was signed during the BASF & UPC Technology Low Carbon Footprint Strategic Partnership Summit, held on September 1, 2026, at UPC’s Zhuhai site. It establishes a framework for collaboration around BASF’s LowPCF products while supporting UPC’s broader decarbonization efforts and its commitment to achieving net-zero emissions by 2050.

 

As customers across the plastics and chemical industries face increasing pressure to reduce emissions throughout their supply chains, product carbon footprints are becoming an increasingly important factor in purchasing and product development decisions.

 

Against this backdrop, BASF and UPC are seeking to move beyond individual products and build closer collaboration across the value chain.

 

During the summit, the companies engaged with downstream customers to exchange views on emerging sustainability trends, strategies for reducing carbon footprints and opportunities created by the transition to a lower-carbon economy.

 

BASF highlighted its upcoming portfolio of LowPCF oxo alcohols and other sustainable product solutions from its Zhanjiang Verbund site. The products leverage Verbund integration, process innovations and a 100% renewable electricity supply to reduce emissions.

 

The resulting cradle-to-gate product carbon footprint (PCF) is significantly lower than a defined internal or external baseline. For customers, this can provide a pathway to reducing Scope 3.1 emissions associated with purchased goods and services, while strengthening their own sustainability propositions. BASF’s product carbon footprint assessment methodology is third-party certified.

 

"Sustainability is becoming an increasingly important differentiator across the chemical value chain," said Bir Darbar Mehta, Senior Vice President, Petrochemicals Asia Pacific, BASF. 

 

"Together with UPC, we are advancing solutions with significantly lower product carbon footprints that help customers achieve their sustainability goals and differentiate in their markets. Through collaboration across the value chain, we aim to create greater value for customers, support product differentiation and unlock new opportunities for sustainable growth."

 

For UPC, the partnership represents an opportunity to respond to changing customer expectations while deepening its collaboration with one of the world's leading chemical producers.

 

"As leading companies in the plasticizer and petrochemical industries, UPC and BASF share a common vision for sustainability," said Ann Bih, President, UPC Group. 

 

"Our partnership on LowPCF products will help accelerate the industry's transition toward a more sustainable future, support the evolving needs of downstream customers and deepen the longstanding relationship between our companies."

 

The new LoI builds on the Memorandum of Understanding signed in 2024, taking the BASF-UPC relationship into its next stage.

 

Rather than treating decarbonization as a standalone initiative, the two companies intend to expand cooperation across the value chain and identify new opportunities to bring innovative LowPCF products to customers throughout Asia Pacific.

 

With sustainability requirements continuing to reshape the chemical and plastics industries, the partnership positions BASF and UPC to help customers address emissions challenges while maintaining the performance, reliability and competitiveness demanded by the market.

 

The collaboration underscores a broader shift underway across the chemical industry: lower-carbon products are increasingly moving from a sustainability ambition to a commercial opportunity — creating new possibilities for differentiation, customer value and long-term growth.