BASF Ventures into China with €9 Billion Mega Investment

BASF has announced its most significant investment in China with a new €9 billion chemical complex in Zhanjiang, which marks the single largest project in the company's history. This move aims to solidify its presence in China amidst global economic cooling.

Stephan Kothrade, BASF's executive board member for Asia, stated that the company's current 14% revenue representation in China is too low for a region that constitutes half of the total global chemical market. By 2030, BASF expects this project to contribute around one-fifth of its global sales, reflecting its long-term vision.

The new plant, which will run on renewable electricity, is set to produce important petrochemicals and industrial materials. Despite geopolitical challenges and concerns about dependence on China, BASF remains confident in competing effectively amid market fluctuations and anticipates revenue growth from the project will reach up to €1.2 billion by 2030.