BASF plans to build engineering plastics and thermoplastic polyurethane production facilities at the new integrated base in Zhanjiang

The first installation of the Zhanjiang Integrated Base will increase global engineering plastics and thermoplastic polyurethane capacity
The BASF Zhanjiang integration project is rapidly advancing with a total investment of US$10 billion. New materials used in electronics, consumer goods and automobile manufacturing help reduce weight, improve safety and productivity.

May 21, 2019 – Guangzhou, China – BASF plans to build a new engineering plastics modification unit and a thermoplastic polyurethane (TPU) production unit at the new integrated production base in Zhanjiang (Verbund). This will be the first device to be put into production at the integrated base.

By 2022, the new engineering plastics modification plant will contribute 60,000 tons of modified engineering plastics to BASF in China each year. This will enable BASF’s total annual production capacity of modified engineering plastics products in the Asia Pacific region to reach 290,000 tons. BASF will fully implement the intelligent manufacturing concept based on cutting-edge technology at the new integrated base. The new unit will use advanced technologies such as automated packaging, high-tech control systems and automated guided vehicles.

Dr. Stephan Kothrade, President of BASF’s Asia Pacific (Function Management) and President and Chairman of Greater China, said: “It is less than a year after signing the first memorandum of understanding. We are announcing the new integration of BASF in Zhanjiang. The construction of the first batch of production facilities at the base is very exciting. The project is currently advancing rapidly, aiming to meet the demand for innovative products from customers in South China as soon as possible.”

In addition to the two new production units, some of the public facilities at the Zhanjiang Integrated Base will be built together. BASF’s wholly-owned subsidiary BASF Integrated Base (Guangdong) Co., Ltd. was formally established recently, further affirming BASF’s commitment to the South China market, which will be responsible for the operation of BASF’s new integrated base.

According to Raimar Jahn, President of BASF’s Specialty Materials Division, “We want to increase our support for the South China market and our global customers. To achieve this, we will be close to the growth customer industry, build new production facilities, and increase production efficiency through smart manufacturing. This will increase our speed of innovation and service efficiency. Electrical and electronic companies and automakers are actively working with BASF to address market trends such as automotive electrification and miniaturization of electronic devices.”

There are many reasons behind the growth of the TPU market, especially for high-end applications – including increasingly stringent regulatory requirements and increasing customer sustainability requirements in areas such as electric mobility, lightweighting and automation. BASF meets these needs by providing solutions such as safety-enhanced cables and wires for automation and automotive, as well as lightweight materials for consumer products. With the rapid changes in customer demand across the globe, BASF is investing in emerging markets to meet local customer needs while continuing to invest in mature economies.

In July 2018, BASF signed the first memorandum of understanding on the integration base with the Guangdong provincial government in Berlin, Germany, and signed a framework agreement in January 2019 to develop the details of the plan. Guangdong’s integrated base will be BASF’s largest overseas investment project to date. The total investment is expected to be as high as 10 billion US dollars and will be built and operated independently by BASF. The integrated value chain connects upstream and downstream production facilities, from basic chemicals to consumer goods, to support growth industries such as consumer goods and transportation. The Zhanjiang Integrated Base will be BASF’s third largest integrated production base in the world, second only to Ludwigshafen in Germany and Antwerp in Belgium.