29 October 2018
Details
- New 1,000,000 metric tons steam cracker in Nanjing
will support further downstream portfolio development - BASF-YPC joint venture will expand capacity
- Partners intend to explore new business opportunities
in battery materials
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a Memorandum of Understanding (MoU) in Beijing
to further strengthen their partnership
in upstream and downstream chemical production in China.
The partners intend to build
an additional steam cracker and to further expand
their existing 50:50 joint venture,
BASF-YPC Company, Limited (BASF-YPC).
A joint pre-feasbility study will be concluded
by the end of 2018. Additionally,
the two companies will jointly explore
new business opportunities
in China’s fast-growing battery materials market.
According to the MoU, BASF-YPC will invest
in a 50% stake to build
a second steam cracker with a capacity
of 1,000,000 metric tons of ethylene per year.
SINOPEC Yangtzi Petrochemical (YPC)
will invest the other 50%.
Both BASF-YPC and YPC will have access
to all of the products of the new steam cracker
to develop their downstream product portfolios.
Additionally, the basic chemicals provided
by the new steam cracker enable BASF and SINOPEC
to expand production capacity at BASF-YPC,
their existing integrated joint venture
“Verbund” site in Nanjing.
At a Verbund site, plants are interconnected in order to
utilize products, by-products and energy
in the most efficient way,
to save costs and minimize environmental impact.
The partners are also jointly exploring
new business opportunities in battery materials.
The rising importance of alternative energy in China,
especially in the automotive industry,
has led to a surge in demand
for innovative battery materials for a range of applications.
BASF-YPC was founded in 2000,
with a total investment to date of approximately $5.2 billion.
The integrated petrochemical site produces
about three million tons of high-quality chemicals
and polymers for the Chinese market annually.
The products serve rapidly-growing demand
in multiple industries including
agriculture, construction, electronics, pharmaceutical,
hygiene, automotive and chemical manufacturing.
BASF-YPC posted sales of approximately
CNY 21 billion in 2017 and
employed 1,882 people as of the end of that year.
Dr.Martin Brudermueller,
Chairman of the Executive Board of Directors, BASF SE
“This additional investment into a new steam cracker
and the expansion of our BASF-YPC joint venture in Nanjing
underline the strong partnership
between SINOPEC and BASF
and the commitment to our customers in China,”
Mr. Dai Hou-Liang,
Chairman of the Board and the President of SINOPEC Corporation
“With the strengthened cooperation between Sinopec and BASF,
we will provide high-quality chemicals
that can enhance quality of life for the general consumers
and add oil to better living.
We aim to create further value by extending this partnership,”
Media contacts:
BASF
Corporate Media Relations
Christian Zeintl
Phone: +49 621 60-71233
Email: christian.zeintl@basf.com
SINOPEC
ZHANG Tianlei
Phone: +86 10 59969639
Email: zhangtl@sinopec.com
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