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BASF, a world leader in the chemical industry, and China Petroleum & Petrochemical Corporation (Sinopec) have jointly announced that they will further invest in their joint venture integrated chemical project in Nanjing, east China.
The project, known as BASF-YPC Co. Ltd., is one of the largest Sino-foreign petrochemical joint venture projects in China, with a total investment of US$2.9 billion. The 50-50 project is listed as a key construction project in the 10th Five-Year Plan of the Chinese government.
"Sinopec and BASF have jointly captured the proper market opportunities, capitalized on the key chemical businesses and applied advanced technologies, thus completing the project as scheduled," said Chen Tonghai, general manager and chairman of the board of Sinopec.
"The success will play a vital role in enhancing the international competitiveness of China's petrochemical industry, and will definitely contribute to the rapid, balanced and healthy development of Nanjing and East China's economy," he noted.
According to BASF sources, the Nanjing site is an integral part of the company's strategy for the Asia-Pacific region. Due to the smooth and successful start-up, BASF and Sinopec will invest in additional downstream plants and in the expansion of the steam cracker at their joint venture site in Nanjing. Further details on the timing of the expansion and the capacities of the additional plants will be disclosed shortly.
Dr. Jrgen Hambrecht, executive chairman of BASF's board of executive directors, said, "The accomplishment of a such a large scale project is owed to the tremendous efforts of our employees, our partners and in particular to the support of the Chinese and German governments. The site will make a substantial contribution to our goal of achieving 10 percent of our global sales in the chemical business in China by 2010."
BASF-YPC Co. Ltd. is a 50-50 joint venture between BASF and SINOPEC, founded in 2000. The ground breaking for the site, located in Nanjing, Jiangsu Province, took place on September 28, 2001.
The 220-hectare site is designed to produce 1.7 million metric tons of top-quality chemicals and polymers a year for the rapidly growing Chinese market. The site also has a gas-fired power plant and an international port on a tributary of the Yangtze River to ensure optimum energy supply and logistics.
SINOPEC Group's General Manager & Chairman of Board, Chen Tonghai; SINOPEC President Wang Tianpu; Chairman of BASF's Board of Executive Directors, Dr. Jrgen Hambrecht; and Dr. Andreas Kreimeyer, member of BASF's Board of Executive Directors, are responsible for Asia Pacific.
(Xinhua News Agency October 10, 2005)
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