In a significant development on Thursday, the renowned German chemical powerhouse, BASF, unveiled the inauguration of a cutting-edge thermoplastic polyurethanes (TPU) facility. This marks the second operational plant within the ambit of the ambitious 10 billion-euro Verbund site currently under construction in Zhanjiang, located in the Guangdong province. The strategic establishment of this new facility is geared towards empowering BASF to effectively cater to the escalating demand in the Asia-Pacific region, particularly in key sectors such as industrial applications, e-mobility, and emerging energy solutions. Martin Jung, President of Performance Materials at BASF, made this announcement during a ceremony held in Zhanjiang, emphasizing the pivotal role of the new plant in meeting the evolving market needs.

Distinguished as the largest single TPU production line in BASF's global portfolio, the newly inaugurated plant is poised to play a pivotal role in addressing the burgeoning demand for TPU. Thermoplastic polyurethanes find extensive applications across diverse industries, including automotive, footwear, agriculture, sports and leisure, healthcare, and industrial manufacturing. The facility's location in Zhanjiang, within the larger context of BASF's global operations, positions it as the company's largest investment endeavor and is slated to emerge as the third-largest site in their global network, following the iconic sites in Ludwigshafen, Germany, and Antwerp, Belgium.

As part of the comprehensive infrastructure at the Zhanjiang site, a steam cracker boasting an annual capacity of 1 million metric tons of ethylene is underway, with a projected start-up date late next year, as indicated by Haryono Lim, President of Mega Projects, Asia at BASF. Furthermore, a subsequent expansion phase, encompassing additional downstream plants, is anticipated to be operational by 2028. The Zhanjiang site, in line with BASF's commitment to innovation and sustainability, is poised to evolve into a model for smart manufacturing and sustainable production practices, reflecting the company's dedication to environmental responsibility.

It is noteworthy that the Zhanjiang site is not a standalone initiative, but part of BASF's larger strategy for global Verbund sites. The company had already initiated the first plant at the Zhanjiang site in 2022, specializing in the production of 60,000 metric tons of engineering plastic compounds annually. Importantly, both plants at the site, including the newly launched TPU facility, operate on renewable energy sources, underscoring BASF's commitment to environmentally conscious and sustainable practices.

With a total of six other Verbund sites operating globally, including one in Nanjing, Jiangsu province, China holds a significant position in BASF's global operations. As the second-largest market for BASF after the United States, China continues to play a crucial role in the company's growth trajectory. The ongoing investments and expansions in the Zhanjiang site further solidify BASF's commitment to advancing technological capabilities, meeting market demands, and contributing to sustainable industrial development in the dynamic Asia-Pacific region and beyond.