On May 21, BASF stated that it plans to build a new engineering plastics modification device and a thermoplastic polyurethane (TPU) production device at its new integrated production base (Verbund) in Zhanjiang, which is under construction. This will be the first batch of equipment put into production at the integrated base.
By 2022, the new engineering plastics modification device will produce 60,000 tons of modifications for BASF in China every year. Engineering plastic products. This will bring BASF’s total annual production capacity of modified engineering plastics products in the Asia-Pacific region to 290,000 tons. BASF will fully implement the intelligent manufacturing concept based on cutting-edge technology in the new integrated base. The new facility will use various advanced technologies such as automated packaging, high-tech control systems and automatic guided vehicles.
In addition to two new production units, some public facilities at the Zhanjiang integrated base will also be built. BASF Integrated Base (Guangdong) Co., Ltd., a wholly-owned subsidiary of BASF, was recently officially established, further affirming BASF’s commitment to the South China market. The company will be responsible for the operation of BASF’s new integrated base.
BASF said that there are many reasons behind the growth of the TPU market, especially the increase in demand for high-end applications – These include increasingly stringent regulatory demands and increasing customer sustainability requirements in areas such as e-mobility, lightweighting and automation. BASF addresses these customer needs by providing solutions such as safety-enhanced cables and wires for automation and automotive, as well as lightweight materials for consumer goods. As customer needs change rapidly in various regions around the world, BASF is increasing investment in emerging markets to meet local customer needs, while also continuing to invest in mature economies.
BASF signed the first integrated base understanding with the Guangdong Provincial Government in Berlin, Germany, in July 2018 Memorandum of Understanding and a framework agreement was signed in January 2019 to work out the planning details. The integrated base in Guangdong will be BASF’s largest overseas investment project to date. The total investment is expected to be up to US$10 billion, and it will be constructed and operated independently by BASF. Integrated value chains will connect upstream and downstream production units from basic chemicals to consumer goods, supporting growth industries such as consumer goods and transportation. The Zhanjiang integrated base will become BASF’s third largest integrated production base in the world, after Ludwigshafen, Germany, and Antwerp, Belgium.
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