Germany's chemical giant is still shaken by the experience, thankful that investing 10 billion yuan in Guangdong to build a factory turned out to be the wisest decision!
According to Xinhua News Agency, on March 26, BASF (Guangdong) Integrated Base on Donghai Island, Zhanjiang, was fully put into operation. Nearly 10 billion euros in investment has been realized. This is the largest wholly foreign-owned project ever undertaken by a German company in China. At this moment, BASF's shareholders might finally breathe a sigh of relief. Looking back, they made what could be considered the most brilliant decision of this century.
Since the closure of the Strait of Hormuz, Europe has been suffering from an ongoing energy crisis, with natural gas prices soaring. Chemical production has become increasingly difficult. BASF’s plants in Europe are under immense cost pressure. They had to seek new solutions. Meanwhile, Guangdong offers a complete industrial chain and stable natural gas prices.
The BASF base in Zhanjiang covers 4 square kilometers. Eighteen facilities have already gone into operation, with 32 production lines running. It produces 1 million tons of ethylene annually. The world’s first electric-driven ethylene plant has been established here, powered 100% by renewable energy, reducing carbon emissions by 50% compared to traditional bases.
Over 80% of the equipment is manufactured in China. The approval process has been significantly streamlined through the "two certificates integrated review" reform, cutting review time down to just 26 days. From barren tidal flats to a bustling industrial zone, BASF completed the transformation in less than eight years.
Diverse raw material sources, with a port located directly within the industrial park, greatly reduce supply chain risks. Building near customers, Guangdong now accounts for nearly 40% of China’s new energy vehicle production capacity. Transport times have shrunk from weeks to just hours. The BASF Shanghai Innovation Park has become the Asia-Pacific R&D hub, collaborating deeply with institutions such as South China University of Technology, securing 69 authorized patents.
The Zhanjiang base has become BASF’s third-largest global site. China’s share of BASF’s sales will rise from 13% to between 15% and 20%. It helps maintain stability in the global petrochemical industry chain, supplying high-quality raw materials to sectors including automobiles, electronics, and pharmaceuticals.
Original article: toutiao.com/article/1861435603584000/
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