Phase I Project at BASF’s New Verbund Site in Zhanjiang Approved
2019-08-05    [Source:PUdaily]
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PUdaily, Shanghai-- On July 31, BASF’s engineering plastics and TPU project at the new Verbund site in Zhanjiang was officially approved. Thus, the engineering plastics and TPU facilities will be the first to be put into production at the site.
 
The Phase I project (comprised of engineering plastics and TPU facilities and supporting utilities) at the new Verbund site requires an investment of $192 million, which will be provided by BASF. The project is scheduled to start construction in April 2020 and will come online in 2022.
 
The project is located in the petrochemical industrial park in Donghai Island of Zhanjiang City, southeast of the Verbund site. Covering an area of 220,000 square meters, the project has a building area of 37,713 square meters.
 
It is reported that the facilities mentioned above will be started in 2022. At the time, the engineering plastic facilities will produce 60,000 tons of modified engineering plastics a year. And BASF's capacity for modified engineering plastics in the Asia-Pacific region will amount to 290,000 tons/year. BASF will apply the smart-manufacturing concept based on cutting-edge technologies at the site. The new facilities will adopt various advanced technologies such as automatic packaging, high-tech control systems and automatic guided vehicles. 
 
The project consists of main part, storage and transportation facilities, utilities, auxiliary and environmental facilities. The main part includes engineering plastics and thermoplastic polyurethane (TPU) plants. The engineering plastics plant, which will be constructed in two phases, has a total capacity of 160,000 tons/year, including a capacity of 80,000 tons/year for the current phase and a capacity of 80,000 tons/year for the forward phase. The TPU plant, with a capacity of 32,000 tons/year, will be built at one go. 
 
According to the report of Nanfang Daily, on July 30, Ma Xingrui, the governor of Guangdong province, met with Martin Brudermüller , CTO and chairman of the executive board of BASF SE, and his entourage. 
 
Ma Xingrui stressed that building the Verbund site as a major strategic project of great significance in Zhanjiang is an important move made by Guangdong to promote high-quality development, form a new landscape in opening up its economy and accelerate coordinated development between regions. Zhanjiang, a sub-central city in the west of Guangdong province and the coastal economic zone, enjoys great geographical advantage for economic development and is making great efforts to build a world-class heavy chemical industry base adjacent to the harbor. The provincial government has confidence in working with BASF to build the project into a model showing China's commitment to opening up its petrochemical industry. He hoped that both parties would enhance communication and liaison to ensure that the project is started on schedule and goes into production as soon as possible. 
 
Brudermüller expressed thanks to the Guangdong provincial party committee and provincial government for their great attention to and support for the project. He said, Guangdong's business environment is good, and policies such as Policies and Measures of Guangdong Province on Further Expanding Opening-up and Actively Attracting Foreign Direct Investment are effective. BASF would work with Guangdong Province and Zhanjiang City to make fresh progress in the construction of the project.  
 
About BASF’s new Verbund site in Zhanjiang
 
On July 9, 2018, witnessed by the premier of China and the chancellor of Germany, Dr. Brudermüller, chairman of executive board of BASF SE, and Lin Shaochun, executive vice governor of Guangdong province, jointly signed a non-binding memorandum of understanding on the construction of a Verbund site for the production of chemicals in Berlin, Germany. 
 
It is reported that the Verbund site will be BASF's largest investment project so far and will be operated independently by the company. With a total investment of up to $10 billion, the project will be completed around 2030. The construction of the first facilities will be completed by 2026 at the latest.
 
The first phase of the project includes a petrochemical plant, which will be the core of the Verbund system. A steam cracker with an ethylene capacity of 1 million tons per year will serve as the beginning of the value chain at the new Verbund site. Following that, several downstream facilities will be built to provide customer-oriented products and solutions for transportation and consumer goods industries. Upon completion, the project will become BASF's third largest Verbund site in the world after those in Ludwigshafen and Antwerp.
 
On January 10, 2019, Martin Brudermüller, chairman of the executive board of BASF SE, and Lin Shaochun, member of the standing committee of Guangdong provincial party committee and executive vice governor, signed a framework agreement in Ludwigshafen to further confirm the details of the plan to build a smart Verbund site in Guangdong.
 
According to the agreement, fully embracing the concept of circular economy the new Verbund site in Zhanjiang will support BASF’s customers in South China on the basis of sustainable production. At the Verbund site, waste and by-products from one facility can be used as raw materials for another facility. The concept of smart manufacturing based on advanced technologies is taking shape, aimed at maximizing the efficiency of resources and energy and reducing the environmental impact. The project will cover an area of about 9 square kilometers.

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