BASF Launches Verbund Project in Zhanjiang, China
BASF has officially launched its smart Verbund project in Zhanjiang, Guangdong province, China, and commenced building its first plants. It marks a milestone of the company’s US$10 billion investment project announced in July 2018, BASF stated. According to the company, the first plants will produce engineering plastics and thermoplastic polyurethane (TPU) to serve the increasing needs of various growth industries in the southern China market and throughout Asia.
BASF stated that by utilizing the latest digital technologies and applying the highest safety standards, the new Verbund site will be a role model for sustainable production contributing to the development of a circular economy in China. The company also anticipates that by 2022, the new engineering plastics compounding plant will supply an additional capacity of 60,000 metric tons per year in China, bringing BASF’s total capacity of these products in Asia Pacific to 290,000 metric tons per year.
According to BASF, the new capacity will enable BASF to meet the growing demand of its customers, particularly in the automotive, electronics and new energy vehicles (NEV) industries. Additionally, BASF plans to implement a comprehensive smart manufacturing concept at the Verbund site based on cutting-edge technologies. The new site will reportedly utilize automated packaging, high-tech control systems, and automated guided vehicles.
BASF Integrated Site (Guangdong) Co. Ltd, BASF’s new wholly owned subsidiary, has also been officially formed. This entity will oversee the operations of the new Verbund site, underlining BASF’s commitment to the China market. The Verbund site in Guangdong would be BASF’s largest investment, estimated up to $10 billion upon completion, and would be operated under the sole responsibility of BASF. The first plant producing engineering plastics compounds is expected to be operational by 2022, and the whole Verbund site is planned to be completed by 2030.