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BASF to Open €8.7 Billion China Complex as CEO Warns of Delayed Returns

Kamieth frames continued China investment as essential to retain market access despite geopolitical risk.

Overview

  • The new Zhanjiang site is scheduled to open Thursday and marks BASF’s largest single investment to date.
  • BASF expects profitability in the first years to fall well below earlier plans because the market is oversupplied and prices and margins are at historic lows.
  • The complex is positioned to become BASF’s third-largest production site, after Ludwigshafen and Antwerp.
  • Management says the plant will not replace recently closed units in Ludwigshafen and that no production is being shifted to China.
  • The project, initiated under former CEO Martin Brudermüller in 2020, continues to face criticism over China exposure following Russia-related write-downs.