BASF's China Megaproject Begins Operations

BASF has announced the successful start of operations at its new Zhanjiang Verbund site in China's Guangdong province. This marks the company's seventh global Verbund site and represents its largest single investment worldwide, as well as the most significant investment by a German company in China. The project was completed on schedule and under budget.

The Zhanjiang site is designed around digitalization, feedstock flexibility, and renewable power, positioning BASF for future growth in the Chinese market. By 2030, the company expects this facility to generate between EUR 4 billion and EUR 5 billion in sales, contributing substantially to its core businesses.

While initial startup costs are anticipated to result in slightly negative EBITDA in 2026, BASF projects a key inflection point in 2027. Full capacity utilization and cost optimization measures are expected to lead to positive EBITDA contributions from 2027 onward. The total capital expenditure for the project from 2019 to 2028 is reported to be EUR 8.7 billion.

BASF has a long-standing presence in China, operating for over 140 years with production dating back to 1969. Currently, approximately 80% of its Greater China sales come from local production, with nearly 90% of necessary input factors sourced domestically. The company operates numerous production sites and joint ventures across China.