US EditionGermany News: BASF Opens Massive Factory in China
BASF invested €8.7–10 billion in its largest-ever Chinese facility, employing over 2,000 people, while expecting significantly lower profits for the next two years.
- On Thursday, German chemical giant BASF opened its new $11.6 billion Zhanjiang Verbund petrochemical facility in China, though Chief Executive Officer Markus Kamieth acknowledged profits will remain significantly lower than anticipated for the next two years.
- The company decided to proceed with this 2018 investment to tap into China's growing petrochemical industry, despite rising energy costs and industrial overcapacity in the broader €635 billion chemical sector challenging European firms.
- Berenberg analyst Sebastian Bray called the site a "very good asset in a tough market," while adding that "ultimately BASF is adding supply to what is probably an oversupplied market."
- BASF previously adjusted its financial outlook, projecting a €100 million earnings hit for 2026, while Kamieth has been restructuring the German company since April 2024 to boost profitability.
- BloombergNEF analyst Philip Geurts noted the modern Zhanjiang facility may weather disruptions better than older, naphtha-reliant plants in South Korea and Japan, as BASF anticipates improvement over the next four years.
21 Articles
21 Articles
The chemical company is opening a new large location in China, at a time when the tone between Germany and China is intensifying and an energy crisis is threatening. However, the company sees this as an opportunity. A visit to Zhanjiang.
BASF relies on profits with billions of works in China, while Germany weakens. Can the plan for the giant of chemistry be implemented?
BASF has invested more than eight billion euros in a new location in South China. About half of the world's demand for chemicals lies in the country. However, critics fear that the Group is dependent on an autocratic state. That is not their only concern.
In the midst of the slump in demand, BASF is opening its new location in China. Head of the company, Kamieth, is unshakable in his belief in the greatest investment in history. Even in the blockade of Hormus, he sees an opportunity.
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- 46% of the sources lean Right
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