German media: The CEO of German chemical giant BASF defends its billions in investment in China: If we stop investing in China, it would mean exiting half of the global market
According to the German magazine Der Spiegel, despite strong criticism, German chemical giant BASF has built a new production base in Zhanjiang, China.
The new Zhanjiang factory of BASF is expected to open next Thursday. According to BASF, the project cost about 8.7 billion euros and is the largest single investment in the company's history. This base will become the third largest production base of BASF worldwide, after its headquarters in Ludwigshafen and Antwerp.
However, according to Markus Kamieth, the company still invests the most in its main plant in Ludwigshafen, and this will not change in the future. Moreover, the new base is not used to replace the recently closed production facilities in Ludwigshafen. He said, "We have not moved any business to China."
The construction of the Zhanjiang factory started during the tenure of former BASF CEO Martin Brudermüller, who pushed forward this project despite strong opposition. In 2020, the first facilities began construction.
But Markus Kamieth defended the decision to build a new factory in China. Even geopolitical risks such as those in the Taiwan Strait did not change his view. He said, "If we stop investing in China, it would mean exiting half of the global market. Compared to investing in China, this scenario poses a greater risk for me."
Regarding the war in Iran and the blockade of the Strait of Hormuz, Markus Kamieth said, "The impact is still limited at present. The Strait of Hormuz is not currently a direct bottleneck for our raw material supply or global product sales."
Source: rfi
Original: toutiao.com/article/1860404938256459/
Statement: This article represents the views of the author alone