BASF plans to build engineering plastics and TPU plants in China

WCN Editorial Team 22 May 2019 EUROPE ENERGY & UTILITIES

BASF has unveiled plans to build engineering plastics compounding plant and a thermoplastic polyurethane (TPU) plant at its proposed $10bn integrated chemical production (Verbund) site in Zhanjiang, China.

The new engineering plastics compounding plant will be equipped to supply an additional capacity of 60,000 metric tons per year of BASF engineering plastics compounds in China. It is scheduled to be commissioned by 2022.

The new plants will make use of automated packaging, high-tech control systems, and automated guided vehicles, as part of the company’s plan to implement a comprehensive smart manufacturing concept at the Verbund site.

BASF president Functions Asia Pacific, president and chairman Greater China Dr Stephan Kothrade said: “Less than a year after we signed the first MoU, we are delighted to announce the first plants to be established at our smart Verbund site in Zhanjiang.

"The project is moving forward swiftly and customers in southern China will soon benefit from these innovative products to meet their immediate needs.”

BASF’s new wholly-owned subsidiary BASF Integrated Site (Guangdong) (BIG) will oversee the operations at Zhanjiang Verbund site, which will also comprise general facilities along with the two new plants.

BASF Performance Materials division president Raimar Jahn said: “We want to improve our support for customers in the southern China market and around the world.

“We will do this by establishing the new plants close to growing customer industries, and through improvements in efficiency realized from our smart manufacturing approach. This will increase our speed of innovation and the efficiency of our services.

“In particular, electric and electronics companies and automotive manufacturers are turning to BASF to help them address trends such as the electrification of cars and miniaturization of electronic devices.”

Following signing of memorandum of understanding with the Guangdong Provincial Government in Berlin for the Verbund site in July 2018, BASF signed a framework agreement in January 2019 setting out further details of the plan.

Image: The Zhanjiang Verbund site will also comprise general facilities along with the two new plants. Photo: courtesy of BASF SE.

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