BASF has officially launched its Verbund project in Guangdong province, China, and commenced building its first plants, Hydrocarbon Engineering reports.
The company’s $10 billion investment project was announced in July 2018. The first plants will produce engineering plastics and thermoplastic polyurethane to serve the increasing needs of various growth industries in the southern China market and throughout Asia.
We are pleased to see our mega-investment project in China is progressing. We are determined to support our customers in southern China drive growth with innovative products and sustainable solutions.Martin Brudermüller, Chairman of the Board of Executive Directors, BASF SE
By 2022, the new engineering plastics compounding plant will supply an additional capacity of 60 000 tpy in China, bringing BASF’s total capacity of these products in Asia Pacific to 290 000 tpy. The new capacity will enable BASF to meet the growing demand of its customers, particularly in the automotive, electronics and new energy vehicles industries.
BASF plans to implement a comprehensive smart manufacturing concept at the Verbund site based on cutting-edge technologies. The new site will utilise automated packaging, high-tech control systems, and automated guided vehicles.
BASF signed the first memorandum of understanding for the Verbund site with the Guangdong Provincial Government in Berlin, Germany, in July 2018. In January 2019, the company signed a framework agreement setting out further details of the plan.
The first plant producing engineering plastics compounds is expected to be operational by 2022, and the whole Verbund site is planned to be completed by 2030.