News from the First Textile Network on November 24 (reported by reporter martin): On November 23, BASF’s total investment reached US$10 billion in Guangdong’s new The integrated production base (Verbund) project was officially launched in Zhanjiang, Guangdong, and the construction of the first batch of devices began. This is an important milestone since the project was announced in July 2018. The first units of the project will produce engineering plastics and thermoplastic polyurethane (TPU) to meet the needs of customers in multiple growth industries in Southern China and the entire Asian market.
It is understood that BASF’s Zhanjiang integrated base is located on Donghai Island in Zhanjiang City, Guangdong Province. The planned area of the project is about 9 square kilometers, and the total investment is expected to reach 10 billion US dollars. The entire base will be completed by 2030. The first batch of units of the project will produce engineering plastics and thermoplastic polyurethane (TPU), providing materials for automobiles, electronic products, new energy vehicles and other fields.
BASF signed the first integrated base memorandum of understanding with the Guangdong Provincial Government in Berlin, Germany, in July 2018, and signed a framework agreement in January 2019 to formulate planning details. The Guangdong integrated base 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. Upstream and downstream production units from basic chemicals to consumer goods will form an integrated value chain to support growth industries such as consumer goods and transportation. The Guangdong integrated base will become BASF’s third largest integrated production base in the world, after Ludwigshafen, Germany, and Antwerp, Belgium. The core of the first phase is the construction of a steam cracking unit with a planned annual production capacity of 1 million tons of ethylene. , the first unit will be put into operation in 2022, and the entire integrated base is expected to be completed in 2030.
Dr. Stephan Kothrade, President of BASF Asia Pacific (Functional Management) and President and Chairman of Greater China, said: “Zhanjiang is an excellent choice for BASF to further strengthen its local production capabilities in China. Our new integrated production base will become the cornerstone of Zhanjiang’s world-class industrial cluster and provide strong support for BASF’s business development in South China and the Asian market. .”
By 2022, the new engineering plastics modification device will contribute 60,000 tons of modified engineering plastics products to BASF in China every year, increasing BASF’s total output of modified engineering plastics products in the Asia-Pacific region to 290,000 tons. BASF will use this to better meet the growing needs of customers, especially in industries such as automobiles, electronic products and new energy vehicles.
BASF plans to use cutting-edge technology in this integrated base to fully implement the smart production concept. The new base will also feature automated packaging, high-tech control systems and automated guided vehicles, among other technologies.
BASF’s integrated base will also contribute to the development of local communities in Zhanjiang. The company is forming strategic partners with local technical schools and other units to cultivate professional talents.
BASF Integrated Base (Guangdong) Co., Ltd., a wholly-owned subsidiary of BASF, has also been officially established. The company is mainly responsible for the operation of the new integrated base, which reflects BASF’s commitment to the Chinese market.
Data show that Donghai Island is the fifth largest island in our country Island, the largest island in Guangdong, with a total area of 286 square kilometers and a total beach length of 28 kilometers. It was certified by the Guinness Headquarters in Shanghai as “China’s Longest Beach” and the beach is 100-300 meters wide.
Donghai Island is located in the eastern part of Leizhou Peninsula, China. It was historically an island under the jurisdiction of Suixi County, Leizhou Prefecture. After the construction of the Northeast Levee in 1958, it facilitated the access of the islanders. Now it belongs to the Zhanjiang Economic Development Zone. The island is mainly connected to three sub-district offices: Dongshan, Dongjian and Min’an. The terrain is high in the east and low in the west, with basalt platform in the east and marine plain in the west. At the eastern end, 2 kilometers away from the beach, there is the Longshuiling volcanic cone with an altitude of 111 meters, covering an area of 500 × 500 meters. It is composed of volcaniclastic rocks and a small amount of basalt. It is a natural navigation landmark. Weifang Port and Beishan Port are the largest fishing ports on the island. The 6.5-kilometer coastline near Weifan has a water depth of 26 to 40 meters, including 650 meters of 40-meter deep-water channels. There are more than 400,000 acres of land yet to be developed on the island. The terrain is flat, with an elevation of 4 to 14 meters. It is a geologically hard igneous rock base. The daily extraction volume of groundwater can reach 500,000 cubic meters. It is rich in fish and salt, with Anli and Hongqi Salt Farms. It is famous for its abalone and shrimp aquaculture. The beach is long and white.
Dr. Martin Brudermüller, Chairman of the Executive Board of BASF SE, said: “I am very pleased that BASF is making progress on this major investment project in China. We are committed to supporting our customers in South China and providing They bring innovative products and solutions.”
Brümüller added: “By using cutting-edge technology and adhering to the highest safety standards, the new integrated site will become a model for sustainable production.�The chemical market accounts for 40% of the total global market and will continue to drive the growth of global chemical production; by 2030, its share will expand to nearly 50%. BASF wants to grow with them, so it has built a second integrated base in China in Zhanjiang, Guangdong, and expanded the original integrated base in Nanjing. Due to the high concentration of production in the integrated system, BASF can save more than 1 billion euros in costs every year. In addition, the Zhanjiang base will fundamentally apply the concept of circular economy, adopt sustainable production methods, and adopt cutting-edge technology to fully implement the concept of intelligent manufacturing to provide support to customers in South China.
Yu Xiaobo said that before the release of the new strategy in 2019, BASF Group had five major business areas, 13 business departments, subsidiaries in more than 80 countries, and 6 integrated companies around the world. chemical (Verbund) base and 347 other production bases. The five major business areas are chemicals, performance products, functional materials and solutions, agricultural solutions, and oil and gas. As an important foreign-invested enterprise in China’s chemical industry, BASF’s main investment projects are located in Nanjing, Shanghai and Chongqing, and its production bases are spread across the country. Among them, BASF Asia Pacific Innovation Park (Shanghai) is a research and development hub in the world and the Asia-Pacific region. As of the end of 2017, BASF had a total of 25 production bases in Greater China (excluding Yangzi Petrochemical-BASF Co., Ltd.).
Among the five major businesses: functional materials and solutions account for the highest revenue share (32%), followed by chemicals (25%) and performance products (25%)). The business components are: the chemicals business consists of petrochemicals, monomers and intermediates sectors, with this business area accounting for 25% of revenue; its product series includes solvents, plasticizers and a large number of monomers, glues and electronic chemicals , as well as raw materials for detergents, plastics, textile fibers, paints and coatings, crop protection and pharmaceuticals. The performance products business includes dispersions and pigments, care chemicals, nutrition and health and performance chemicals. This business area accounts for 25% of revenue. The functional materials and solutions business includes catalysts, chemical building materials, coatings and performance materials. This business area accounts for the highest revenue share of 32%. The Agricultural Solutions business provides solutions in crop protection, seed treatment and water management, as well as nutrient supply and plant stress. The oil and gas business engages in exploration, production and transportation.
The financial report shows that in 2018, BASF achieved operating income of 62.675 billion euros, a year-on-year increase of 2.4%; EBIT 6.353 billion euros, a year-on-year decrease of 16.9%; net profit of 4.707 billion euros, a year-on-year decrease of 22.6%; in 2018 Q4 operating income was 15.586 billion euros, a year-on-year increase of 2.3%; EBIT was 630 million euros, a year-on-year decrease of 58.7%; net profit was 348 million euros, a year-on-year decrease of 77.4%.
In the first three quarters of 2018, BASF achieved revenue of 47.089 billion euros, a year-on-year increase of 2%; however, net profit fell 4% year-on-year to 4.359 billion euros due to the decline in chemical business performance and lower gross profit margin. On an annual basis, revenue in 2017 was 64.475 billion euros, a year-on-year increase of 12.03%; net profit was 6.078 billion euros, a year-on-year increase of 49.85%; gross profit increased steadily. On a quarterly basis, revenue in the third quarter of 2018 was 15.606 billion euros, a year-on-year increase of 7.51%, mainly due to the increase in sales prices; net profit was 1.2 billion euros, a year-on-year decrease of 10.18%, mainly due to the decrease in chemical business performance .
BASF has previously released a capital expenditure plan of 21.3 billion euros from 2019 to 2023. The main projects currently planned or being implemented include: (1) Antwerp, Belgium: ethylene oxide integrated unit; (2) Geismar, Louisiana, USA: MDI production capacity expansion; (3) Ludwig Industrial Park, Germany: acetylene unit replacement, new vitamin A and ibuprofen production capacity; (4) Kuantan, Malaysia: acrylic acid and butyl acrylate production capacity expansion; (5) Mundra, India: Cooperate with Adani to invest in the acrylic acid industry chain; (6) Zhanjiang, Guangdong, China: Invest in a new integrated industrial park. (First Textile Network Martin)
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