On March 26, global chemical giant BASF inaugurated its world-scale integrated (Verbund) production site in Zhanjiang, Guangdong, marking the largest single investment wholly owned by a German company in China. Covering around four square kilometers, the 8.7 billion euro project underscores BASF's confidence in China's growing market.
"Zhanjiang shows what the future of chemistry looks like: efficient, digital, and sustainable by design. The site demonstrates a smart, integrated Verbund structure on an industrial scale," said Dr. Markus Kamieth, CEO of BASF, at the ceremony.
The Zhanjiang site employs more than 2,000 people and produces a diversified portfolio of basic chemicals, intermediates, and speciality chemicals for transportation, consumer goods, electronics, home care, and personal care industries. BASF has successfully started 18 plants and 32 production lines at the site, producing more than 70 products.
Most products from Zhanjiang will serve customers in China, fully aligned with BASF's "local-for-local" strategy. China today represents roughly 14% of BASF group sales globally. With the new Zhanjiang Verbund site in operation, it will increase to roughly 18 to 19%.
The site's world-scale flex-feed steam cracker, with a capacity of 1 million tons of ethylene per year, is the first in the world to use e-drive compressors powered entirely by renewable energy.
Long-term green power purchase agreements and investments in an offshore wind farm enable the site's electricity supply to be 100% renewable. By using Verbund integration, process innovations and renewable energy, carbon emissions at the site can be reduced by up to 50% compared with a conventional petrochemical site.
Meanwhile, the site has attracted more than 50 petrochemical companies to Zhanjiang, building a full industrial ecosystem with an annual output value exceeding 120 billion yuan.
China is continuously boosting its appeal to foreign investors, encouraging reinvestment by existing foreign-funded companies. Guangdong, one of the country's economic powerhouses, is emerging as a key destination for such investment. In 2025, Guangdong Province saw 36,000 newly established foreign-invested enterprises, an increase of 38.7%, and actual utilization of foreign capital reached 112.66 billion yuan, an increase of 11.3%.
Reporter: Dai Bosi
Video: Pan Jiajun
Poster: Lai Meiya
