On 26 March 2026, the chemical company officially opened its new integrated site in Zhanjiang, southern China.

With an investment of around €8.7 billion and covering an area of four square kilometres, the project is one of the company’s largest single investments, BASF announced. According to the company, BASF employs more than 2,000 people at the Zhanjiang site and plans to produce a diversified portfolio there, comprising basic chemicals, intermediates and speciality chemicals for the transport, consumer goods, electronics, household cleaning and personal care sectors. The site is said to consistently follow the ‘local-for-local’ strategy: the majority of production is intended for the Chinese market. According to BASF, the plant in China is the company’s seventh Verbund site worldwide and the third largest after Ludwigshafen and Antwerp. Currently, 18 plants and 32 production lines were already in operation in Zhanjiang, manufacturing more than 70 products.
 
BASF emphasises the site’s sustainable focus: Zhanjiang was powered entirely by renewable electricity, secured through long-term green electricity contracts and investments in offshore wind energy. The combination of Verbund integration, process innovations and renewable energies enables CO₂ emissions to be reduced by up to 50 per cent compared to conventional petrochemical plants, the company adds. “Zhanjiang shows what the future of chemistry looks like: efficient, digital and consciously sustainable from the outset. The site demonstrates a smart, integrated complex structure on an industrial scale,” emphasised Dr Markus Kamieth, Chairman of the Board of Executive Directors at BASF, at the inauguration.
 
According to BASF, a technological highlight is the steam cracker with a capacity of one million tonnes of ethylene per year. It is said to be the world’s first cracker whose main compressors are powered entirely by electricity and renewable energy. Furthermore, the plant is designed to be flexible and can process various feedstocks such as naphtha and butane. With the new site, BASF aims to strengthen its position in the dynamic Asian market and further expand its integrated value chain. The combination of economies of scale, efficient production and a lower CO₂ footprint is intended to ensure a competitive cost structure and high security of supply. From BASF’s perspective, the Zhanjiang integrated site exemplifies the chemical industry’s shift towards more integrated, digitalised and sustainable production structures. At the same time, it is seen a central element of the growth strategy in China – and a sign of the increasing shift of large-scale chemical investments towards global markets of the future.
 
Sources:

• BASF press release (26.3.2026)
• Photo: © BASF