According to a report by China Daily on March 27…
Zhanjiang, Guangdong – BASF, the German chemical powerhouse, officially inaugurated its largest-ever global investment—a world-scale Verbund chemical site in Zhanjiang, Guangdong province—marking a new benchmark in sustainable and integrated chemical production. The move underscores both the company’s confidence in China’s long-term industrial growth and the expanding opportunities in green and high-tech manufacturing.
Spanning roughly 4 square kilometers on Donghai Island, the Zhanjiang site is now one of the largest foreign-invested enterprises in China’s chemical sector. According to Wang Wentao, China’s Minister of Commerce, the project “represents a milestone in Sino-German economic and trade cooperation, setting a new standard for industrial collaboration in China and beyond.”
Strategic Significance for China and BASF
For BASF, the site is central to its “Winning Ways” strategy, combining scale, sustainability, and technological innovation. Markus Kamieth, CEO of BASF, noted: “This is the most integrated and sustainable chemical site in the world. It reflects the future of chemicals—efficient, digital, and environmentally responsible—while showcasing China’s ability to support cutting-edge industrial projects.”
The site employs over 2,000 staff and produces a diversified portfolio including basic chemicals, intermediates, and specialty products for sectors ranging from transportation and electronics to home and personal care. Most products are intended for the Chinese market, aligning with BASF’s global “local-for-local” strategy.
Green Innovation at Industrial Scale
The Zhanjiang site sets new standards for industrial sustainability:
- CO₂ emissions are projected to be up to 50% lower than a conventional petrochemical site through process innovations, renewable energy use, and the Verbund integration model.
- A world-first e-drive steam cracker, powered entirely by renewable energy, can process multiple feedstocks, including naphtha and butane, producing high-quality, low-carbon chemicals.
- Long-term green power agreements and offshore wind investments secure 100% renewable electricity for the site’s operations.
Stephan Kothrade, BASF’s Chief Technology Officer for Asia-Pacific, emphasized that “these innovations demonstrate how large-scale chemical production can simultaneously achieve industrial efficiency, environmental responsibility, and resilience.”
Implications for Global Industrial Investment
The project signals broader trends for multinational corporations: China is increasingly viewed as a strategic hub for high-tech, low-carbon manufacturing, where large-scale industrial investment can align with both market growth and ESG goals. The Zhanjiang Verbund site demonstrates the viability of globally competitive green industrial clusters in China, offering lessons for cross-border investors seeking scale, sustainability, and technological edge.
Officials including Huang Kunming, Guangdong Party Secretary, and Governor Meng Fanli attended the inauguration, highlighting the alignment between local governments and foreign investors to facilitate high-value industrial projects.
Market Takeaways for Investors
- China as a strategic industrial hub – The government’s support for integrated, sustainable manufacturing is creating opportunities for foreign companies with advanced technology and scale.
- Sustainability as a competitive edge – Large-scale renewable-powered operations are becoming a standard expectation for global chemical players.
- Localization and resilience – “Local-for-local” production reduces supply chain vulnerability while capturing China’s growing domestic demand.
BASF’s Zhanjiang site is a case study of how multinational corporations can integrate environmental responsibility, industrial scale, and innovation to drive growth in China’s evolving industrial landscape.