BASF: RMB 127.8 Billion Because of China

On April 30, BASF announced its first-quarter 2026 financial results, reporting steady growth in overall sales, which the company attributed primarily to the Chinese market. Meanwhile, since March, the Group’s operations have been significantly impacted by the conflict in the Middle East.

BASF's first-quarter sales were 16.02 billion euros (approximately 127.875 billion yuan), a decrease of about 3%. The decline was mainly due to fluctuations in the US dollar and Chinese yuan exchange rates, which had a negative impact on sales across all business segments. The chemical, materials, industrial solutions, nutrition and care, and agricultural solutions business segments faced competitive pressure, leading to lower prices. In the surface treatment technologies business segment, prices were significantly higher compared to the same period last year, primarily due to rising prices of precious metals. Except for the surface treatment technologies business segment, sales in almost all other business segments increased. Sales in the "other" business segment declined significantly.

EBITDA excluding special items was 23.56EUR 1.1 billion, a decrease of 5.6% compared to the previous year. Revenue declined in the chemicals, agricultural solutions, and nutrition and care business segments, while EBITDA (excluding special items) for the surface treatment and materials business segment increased. Revenue in the industrial solutions business segment remained essentially flat compared to the same period last year. Revenue in the "other" business segment was significantly lower than the same period last year.

Earnings before interest, taxes, depreciation and amortization is 2.186 billion euros.Year-on-year increase of 14.73%In the first quarter of 2026, special items in EBITDA were negative 170 million euros. These expenses were mainly related to the ongoing cost reduction plans, especially projects associated with the Ludwigshafen site.

Notably, BASF emphasized in its announcement the role of the Chinese market in driving performance. According to our understanding, this is the first time that this world's largest chemical company has explicitly mentioned the Chinese market, which highlights the many changes taking place in the global market structure. Chinese end enterprises are accelerating their global expansion, while global chemical new material giants are accelerating their efforts to "bind" with emerging and future industries in China.

And in the first quarter of this year,BASF's wholly-owned project in China—the BASF Zhanjiang Verbund site—has seen multiple plants successively commence operations.

January,The annual 1 million-ton ethylene integrated plant has commenced operation, supplying ethylene and propylene to multiple downstream units within the base; the new 500,000-ton-per-year polyethylene plant has officially commenced operation and successfully completed its first truckload delivery of “Ba Ju Fu” polyethylene products; the third butyl acrylate (BA) production unit has successfully commenced operation, bringing the Zhanjiang base’s total BA production capacity to approximately 400,000 tons per year; the 2-ethylhexyl acrylate (2-EHA) unit has successfully completed performance testing, achieving an annual production capacity of approximately 100,000 tons; and the “Ba Ju Fu” high-density polyethylene film grade F6095 has successfully completed its first truckload shipment and delivery.

In February, the first shipment of BASF's injection molding grade high-density polyethylene product, Easiplas HDPE IL 8008, was successfully dispatched.

In March, the completion ceremony of the Zhanjiang base was held. The project was delivered as planned, with an investment of approximately 8.7 billion euros, far below the initial budget.

On April 29, BASF also announced that its citral plant at the Zhanjiang site successfully achieved target production volume in the first quarter and has been stably supplying global customers since April.

It is worth noting that last November,BASF will alsoAnnouncing the integration of the Asian PolyTHF™ business.China Caijing Base, while simultaneouslyStop the production of tetrahydrofuran in the Ulsan chemical base, the closure plan is expected to be completed by 2026.

In addition to plant commissioning and layout, BASF signed projects with multiple Chinese companies in the fields of energy transition and new energy materials in the first quarter.

In January, Dongfeng Liuzhou Motor Co. included BASF Shanghai Coatings Co., Ltd. in its supply system, signing a one-year body coating order, with an expected purchase amount exceeding 35.13 million yuan.

BASF Shanshan and Farasis Energy held in-depth talks in Guangzhou, clarifying that they will deepen strategic cooperation on multiple platforms, including the bulk supply of ternary cathode materials and cutting-edge solid-state battery technology.

In February, BASF and Gotion High-Tech signed a strategic cooperation memorandum in Hefei. BASF will leverage its expertise in materials science to collaborate with Gotion High-Tech on the development of next-generation solid-state battery technology.

In March, BASF and Sichuan Xingkong Sodium Battery signed a memorandum of cooperation in Dazhou, Sichuan Province. The two parties will focus on joint R&D of cutting-edge sodium-ion battery technologies, concentrating on key areas such as thermal management, structural design, enhancement of electrochemical performance, and optimization of material systems, and will tackle critical technical bottlenecks including bamboo charcoal anodes and Prussian blue cathodes.

4On the 2nd, BASF and QITEN Robotics officially signed a memorandum of cooperation, focusing on the integrated development of the robotics industry and the chemical materials industry to deepen collaboration, jointly promoting the intelligent upgrade and sustainable development of the chemical industry.

In addition to BASF, a number of global chemical companies have been flocking to ramp up their investments in the Chinese market in recent years, especially this year.

In March, Arkema Group announced that it will increase the capacity of its Kynar® PVDF production plant in Changshu, China, by 20%, with the new capacity expected to come online in 2028.

In April, the Mitsubishi Chemical high-performance materials project was established in Changshu Economic and Technological Development Zone, involving ultra-high molecular weight polyethylene (UHMW-PE), polyether ether ketone (PEEK), polyethylene terephthalate (PET), etc. It is expected to start production before the end of the year, with a planned capacity of over 600 tons.

On April 8, Dow Silicones (Zhangjiagang) Co., Ltd. officially broke ground on its expansion project for a 2,500-ton-per-year batch production line for silicone polymers, which will enhance the production capacity of silicone materials to meet downstream demand from sectors such as electronics and new energy.

On April 13, Nouryon announced the expansion of its Guangzhou base, increasing the production capacity of high-end silica sol to serve sectors such as catalysts, electrical steel, and high-end coatings.

On April 21, the expansion project of Evonik's special amine production in Nanjing officially went into operation, with an investment of tens of millions of euros. The project adds new capacity for low-VOC amine additives, enhancing local supply chain resilience.

Amid global uncertainties, China has become a stabilizing force in the global economy, thanks to its diverse energy base, abundant raw material sources and chemical industry foundation, vast consumer market, and rapidly emerging industries. It is also becoming an increasing number of foreign enterprises' investment haven, as well as a place closer to their customers.