The chemical giant BASF wants to expand its cooperation with Sinopec, the Chinese natural gas and petroleum company.
Among other things, both companies intend to build an additional large-scale plant with an annual capacity of 1 million metric tons of ethylene in Nanjing, BASF announced in Ludwigshafen on Monday.
A preliminary feasibility study is to be completed by the end of the year. Ethylene is an important raw material for plastics. In addition, both companies want to explore new business opportunities in China's rapidly growing market for battery materials.
BASF and Sinopec have been operating the BASF-YPC joint venture since 2000. Last year, the joint venture had nearly 1,900 employees and achieved sales of about 21 billion Chinese yuan (2.65 billion euros).
The petrochemical site in Nanjing, some 300 kilometres from Shanghai, produces about 3 million metric tons of high-quality chemicals and polymers annually for the Chinese market.
During the summer, BASF CEO Martin Brudermüller announced plans to invest billions in southern China following Beijing's recent reforms. Unlike in the past, foreign companies are now allowed to build and operate large-scale projects on their own.
BASF estimates that the investment will amount to up to 10 billion US dollars by the time the new integrated site is completed by around 2030. As such, it would be the largest investment in the company's history.
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