BASF Zhanjiang Integrated Base Plans Full Production By The End Of 2025, Expected To Achieve Up To 1.2 Billion Euros In Profit By 2030

These achievements mark the steady progress of this production base towards the goal of full operation by the end of 2025, fully demonstrating BASF's firm commitment to meeting the growing demand for high-quality petrochemical products in the Asia-Pacific region.

On August 11, 2025, the butyl acrylate unit at BASF's Zhanjiang integrated base officially began operations, ahead of the original schedule, while maintaining an excellent record of zero safety incidents.

On August 17, the first batch of butyl acrylate was successfully delivered via tank truck from the Zhanjiang integrated base, marking the first customer delivery following the commissioning of the new plant. The butyl acrylate plant has a designed annual production capacity of approximately 400,000 tons, which will further strengthen BASF's leading position in the acrylic acid market and provide key raw materials for customers in the adhesives, industrial coatings, and architectural coatings industries.

In addition, the ethylene joint venture facility at BASF's Zhanjiang integrated site and all downstream petrochemical plants have completed mechanical completion, including the ethylene oxide, oxo alcohol, syngas, and high-density polyethylene plants, marking the transition of the project from the construction phase to the operational readiness phase. This milestone ensures that all systems have been installed, connected, and tested, laying a solid foundation for the commissioning and production planned for the end of 2025.

On October 2, Markus Kamieth, Chairman of the Executive Board of BASF Group, stated that the adjusted EBITDA of the Zhanjiang integrated base is expected to reach between €1 billion and €1.2 billion by 2030. In the medium to long term, the base will play a key role in strengthening BASF's core business, with most plants expected to start production by the end of 2025.

BASF also stated that by 2028, the total investment in the Zhanjiang integrated base is expected to be around 8.7 billion euros, a reduction of 1.3 billion euros from the original plan of 10 billion euros. BASF mentioned that the company is making capital allocations, including reducing the expected payments for real estate, plants, equipment, and intangible assets from 17 billion euros to around 16 billion euros during the period from 2025 to 2028.

On that day, BASF presented the latest progress since the announcement of its "Winning Strategy" a year ago and reaffirmed its financial targets for 2028. Specifically, by 2028, the company expects its earnings before interest, taxes, depreciation, and amortization (EBITDA) excluding special items to reach between 10 billion and 12 billion euros. The cumulative free cash flow from 2025 to 2028 is expected to exceed 12 billion euros.

On September 26 last year, BASF proposed a new strategy called "Winning with Purpose," which includes specific measures such as redefining portfolio management by categorizing businesses into core and autonomous segments, adjusting the business structure by exiting non-core areas, and optimizing capital allocation to strengthen market competitiveness.

At that time, BASF planned to pay a dividend of at least €2.25 per share annually between 2025 and 2028, amounting to a total of approximately €8 billion, and committed to a share buyback program of at least €4 billion during the period from 2027 to 2028. The company currently expects to start the share buyback program ahead of schedule.

According to the reform plan previously announced by BASF, it will implement differentiated management for core and autonomous businesses. The core businesses include segments such as chemicals, materials, industrial solutions, nutrition, and care, while the autonomous businesses encompass environmental catalysts and metal solutions, battery materials, coatings, and agricultural solutions.

Kerry has provided the latest disclosure on the company's independent business, specifically including retaining the Environmental Catalysts and Metal Solutions (ECMS) business for a longer period. This business generated €7 billion in sales in 2024 and is expected to generate approximately €4 billion in cumulative cash flow between 2024 and 2030.

The company also plans to list a minority stake in its agricultural solutions division in 2027, which will have sales of 9.8 billion euros in 2024.

In the battery materials division, BASF has significantly reduced fixed costs and capital expenditures, and signed agreements with key customers such as CATL to fill existing capacity. The division's sales are projected to reach 600 million euros in 2024.

Kerry also stated that the company has completed the sale of its decorative paints business in Brazil. In the second quarter of 2025, BASF will begin exploring strategic options for other coatings businesses, including automotive OEM coatings, and is expected to make a decision in the fourth quarter of 2025. It was revealed that the sales revenue of BASF's Coatings division in 2024 was 3.8 billion euros.

Kerry stated, "Our focus on portfolio guidance, capital allocation, and performance culture will prepare BASF for future profit growth." BASF is addressing performance gaps by closing unprofitable plants, launching competitively new businesses, and exploring strategic options. These measures are expected to improve core business earnings by approximately 400 million euros by 2028.

BASF emphasizes that it is accelerating the implementation of its cost-saving plan, which is expected to save 1.6 billion euros annually by the end of 2025 (previously 1.5 billion euros).