Basf bets on China with landmark investment for long-term growth

Yesterday 09:30

German chemical giant BASF is reinforcing its long-term commitment to China through its largest-ever investment project, aiming to expand its footprint in the world’s biggest chemicals market.

The company is currently developing a major chemical complex in Zhanjiang, a project estimated to cost around €9 billion and expected to be completed by 2028. The facility represents a strategic move to better align BASF’s global production network with the growing demand in Asia.

According to senior executive Stephan Kothrade, China has been underrepresented within the group’s industrial operations despite accounting for a significant share of global chemical consumption. Currently, the country contributes a relatively modest portion of BASF’s overall revenues compared to its market potential.

With the new site, BASF aims to significantly increase China’s share in its global sales over the coming years. The company is targeting a stronger position by 2030, reflecting both rising demand and its broader expansion strategy in the region.

The Zhanjiang complex is designed with sustainability in mind and is expected to operate entirely on renewable electricity. It will produce a range of petrochemicals and essential industrial materials, supporting various sectors from manufacturing to technology.

BASF executives emphasize that such investments are planned with a long-term perspective, often spanning several decades. Despite current uncertainties in global markets, the company views China as a key driver of future growth in the chemicals industry.