BASF Zhanjiang Integrated Base Ethylene Unit Mechanical Completion: Opening A New Benchmark For Asia-Pacific Chemicals

In September 2025, BASF's integrated base in Zhanjiang marked a historic moment as the core ethylene joint facility successfully completed mechanical construction. This signifies that the €10 billion global third-largest chemical complex officially transitions from the construction phase to the operational preparation phase. This milestone is not only a key move in BASF's global strategy but also sets a new benchmark for the chemical industry in China and even the Asia-Pacific region with its groundbreaking technological innovations and sustainable practices.

As the "heart" of the Zhanjiang Complex, the ethylene joint unit has a designed annual capacity of 1 million tons and fully integrates more than 10 downstream production units, directly providing forAcrylic acid... provide ethylene for production lines such as polyethylene, butanol, octanol, etc. ... ...and other basic chemical raw materials. The mechanical completion means that the facility is now ready for full-process trial production.

This development will fundamentally change the supply landscape of chemical raw materials in the Asia-Pacific region. At present, some high-end polyolefins in South China rely on imports. After the commissioning of the Zhanjiang complex, the annual production capacity of the polyethylene unit alone will reach 500,000 tons, which can meet the urgent needs of fields such as new energy vehicle battery separators and high-end packaging materials. Even more noteworthy is that the facility adopts globally advanced steam cracking technology. By optimizing the design of cracking furnaces and the energy recovery system, energy consumption is reduced compared to traditional processes, and carbon emission intensity is cut by 30%.

Technological Innovation: A Global Model for Green Manufacturing

The breakthrough of the Zhanjiang base is not only reflected in its scale but also in its deep practice of sustainable development. The syngas unit creatively utilizes the CO₂ by-product from ethylene oxide production and excess fuel gas from steam cracking, converting them into syngas through catalytic reforming technology, thereby reducing direct carbon emissions annually. This technological route is being applied for the first time in the country, providing a new approach for carbon recycling in the chemical industry.

The entire base further implements the concept of a "zero-carbon factory": it has signed a green power agreement with China Energy Engineering Group Guangdong Institute, ensuring that 100% of electricity comes from offshore wind power and photovoltaics; the steam pipeline network adopts an intelligent heat management system, achieving a waste heat recovery rate of 75%; the wastewater treatment unit uses membrane separation technology to realize 90% reuse of reclaimed water. These measures have increased the overall energy efficiency of the Zhanjiang base by 40% compared to traditional chemical industrial parks and reduced carbon emission intensity by 60%, making it the world's first newly built chemical project to receive SBTi (Science Based Targets initiative) certification.

Government-Enterprise Collaboration: Building a World-Class Industrial Cluster

The deep collaboration between the Guangdong Provincial Government and BASF has become a key support for the efficient advancement of the project. Since 2024, the two parties have held fourteen high-level consultation meetings, providing full-chain support from land use approvals to green electricity access. The Zhanjiang Municipal Government has also incorporated the BASF project into the core projects of the "14th Five-Year Plan," with supporting construction including a dedicated terminal with an annual throughput of 5 million tons and a 220 kV smart substation, forming an integrated "chemical-port-logistics" hub.

This synergy between government and enterprises is transforming into an industrial agglomeration effect. Currently, the Donghai Island Petrochemical Park has attracted more than 20 upstream and downstream enterprises, including Dow Chemical and Wanhua Chemical. By 2030, it is expected to form an industrial cluster with an output value exceeding 500 billion yuan.

Market Validation: Rapid Response from Production to Delivery

The market orientation of the Zhanjiang base has been fully reflected in the project advancement. In August 2025, the butyl acrylate plant was put into operation three months ahead of schedule and completed the delivery of the first batch of products. Customers include leading enterprises in South China such as Youyi Group, with significantly shortened delivery cycles compared to before. The simultaneously commissioned world's largest TPU production line has its products applied in the battery pack sealing components of new energy vehicles from BYD and CATL, with an annual capacity of 120,000 tons.

This rapid response capability stems from BASF's unique "customer co-creation" model. At the Shanghai Innovation Campus, the research and development team at the Zhanjiang site collaborates with customers to develop customized materials, such as the lightweight engineering plastic designed for XPeng Motors, which reduces the weight of automotive components while enhancing weather resistance. In the first half of 2025, BASF's petrochemical orders in the Asia-Pacific region increased by 22% year-on-year, with demand from the Chinese new energy industry contributing over 40% of the growth.

With the ethylene joint unit entering the commissioning stage, the Zhanjiang complex is pressing ahead as planned toward full production by the end of 2025. By then, the complex will form a complete industrial chain centered on one million tons of ethylene, covering more than 20 types of high-end chemicals such as acrylic acid, butanol, octanol, and neopentyl glycol. The annual sales revenue is expected to exceed 15 billion euros.

More strategically, the Zhanjiang site will become a "resilient hub" in BASF's global supply chain. By coordinating production capacity with the sites in Ludwigshafen, Germany, and Antwerp, Belgium, BASF can dynamically adjust its production layout based on regional market demand.

Standing at the new starting point of mechanical completion, the BASF Zhanjiang Integrated Site is driven by technological innovation and grounded in sustainable development, writing a new chapter of openness and cooperation in China’s chemical industry. This chemical new city by the East Sea is not only a key strategic hub in BASF’s global strategy but also set to lead the transformation and upgrading of the Asia-Pacific chemical industry towards greening, intelligence, and high-end development. As the countdown to production at the end of 2025 approaches, the world is watching with anticipation the arrival of a new era in the chemical industry.