BASF and SINOPEC expand Nanjing Verbund site to meet demand
BASF and SINOPEC have jointly expanded the Verbund site in Nanjing, China, to meet the growing demand from various industries in the Chinese market.
The expansion includes the inauguration of downstream chemical plants operated by BASF-YPC Co., Ltd., a 50-50 joint venture of both companies. The expansion is a strategic response to the increasing demand from various industries in the Chinese market.
Additionally, a new tert-butyl acrylate (TBA) plant is expected to come on stream by the end of 2023, marking the first implementation of this advanced production technology outside of Germany. TBA is widely used in industries such as paper, coatings, adhesives, and inks due to its outstanding chemical resistance, weatherability, and hydrophobicity.
Dr. Markus Kamieth, member of the Board of Executive Directors at BASF SE, expressed pride in the commencement of the new plants at the Nanjing Verbund site, marking another milestone in the longstanding partnership with China’s SINOPEC. He emphasised that BASF-YPC sets a high standard for safety and business performance among their joint ventures globally and will continue to enable business growth in China with this expansion. Baocai Yu, president of SINOPEC Corp., highlighted the ongoing success of BASF-YPC as a testament to the mutual trust and strong partnership between SINOPEC and BASF.
The inauguration also celebrates BASF-YPC’s expansion in the production of high-quality chemical intermediates, including propionic acid (PA), propionic aldehyde (PALD), purified ethylene oxide (PEO), ethyleneamines (EEAs), and ethanolamines (EOAs). These intermediate products have extensive applications in industries such as agriculture, pharmaceuticals, construction, textiles, and chemicals.
The new facilities, powered by renewable electricity, aim to further reduce carbon emissions during production and make chemicals with low product carbon footprints (PCFs) available to the market. For example, BASF-YPC will introduce PA products to the Asian market with approximately 40% lower PCFs than domestically produced coal-based alternatives, helping customers reduce the carbon footprints of their products.
Dr. Jeffrey Lou, president and chairman, Greater China at BASF, expressed confidence in co-creating with local customers, meeting the growing market demand with innovative and sustainable products, and contributing to the transformation of various industries in China towards a sustainable future.
Yuefeng Gu, chairman of Sinopec Yangzi Petrochemical Company Limited and BASF-YPC Company Limited, emphasised the successful implementation of first-class technology and standards in constructing the new facilities, designed to improve resource utilisation efficiency and extend the upstream and downstream industrial chain, thereby strengthening competitive advantages in the dynamic Chinese market.
BASF-YPC Company Limited, a 50-50 joint venture between BASF and Sinopec, was founded in 2000 with a total investment of approximately USD5.5 billion. The integrated petrochemical site produces about three million tons of high-quality chemicals and polymers for the Chinese market annually, serving the rapid-growing demand in multiple industries. All BASF-YPC plants employ advanced technology and BASF “Verbund” concept to save on raw materials and energy, reduce emissions, cut logistics costs, and exploit synergies. In 2022, BASF-YPC posted sales of approximately USD3.55 billion and employed 2,113 people as of the end of the year.
