BASF, Sinopec Invest $900 Million in Chinese Chemical Plant

March 19, 2008

Expansion part of BASF's plans to increase its production of plastics in China

The world's leading chemical group, BASF, and China Petroleum Chemical Corp. (Sinopec) have agreed to invest another $900 million in their joint project in Nanjing, the companies said March 19.

The two companies have presented Chinese authorities with a feasibility study on the expansion of a steam cracker by 25% to around 750,000 metric tons of ethylene per year and to invest in additional downstream plants, it added. A steam cracker is a petrochemical plant that turns naphtha and light hydrocarbons into ethylene, propylene and other chemical raw materials.

The new facilities were expected to become operational this year, with completion of the project expected in 2009/2010.

BASF and Sinopec set up a Chinese joint venture in 2000 with an initial investment of $2.9 billion to manufacture chemical products and polymers for local markets. BASF said in January that it wanted to multiply its production of plastics in China five-fold this year.

About the Author

Agence France-Presse

Copyright Agence France-Presse, 2002-2024. AFP text, photos, graphics and logos shall not be reproduced, published, broadcast, rewritten for broadcast or publication or redistributed directly or indirectly in any medium. AFP shall not be held liable for any delays, inaccuracies, errors or omissions in any AFP content, or for any actions taken in consequence.