Giants Gather! BASF, Shell, Toray and Others Increase Investment in China, Accelerating the Eastward Shift of the Global Supply Chain, Imminent Reshaping of the Landscape

On March 21, Zhuanshu World reported that the expansion project for downstream silicone products at Dow's Zhangjiagang production base officially commenced operations.The project was initiated onConstruction started in June 2023, as part of the silicone expansion project at the Zhangjiagang base. Dow has completed the silicone resin at the Zhangjiagang production base.expansion and polymer intermediates project, as well asseveral silicone downstream product projects。

workAs one of the earliest foreign chemical companies to enter China, Dow Chemical Company sinceSince entering China in 1979, it has been deeply rooted in the Chinese market for 46 years, establishing a full industry chain layout covering R&D, production, services, and sustainable development.

Zhuanshu Vision found that BASF,Shell, Saudi Aramco、Toray, Clariant, etc.The giants are accelerating their layout in China, increasing investment, building new production bases or expanding existing facilities to better meet the growing demand for high-end chemical products and new materials in the Chinese market, while further consolidating their market position in China and even the Asia-Pacific region.

I. BASF: Exiting Europe While Increasing Investment in China

As the European chemical industry enters a period of adjustment, BASF chooses to close some of its operations in Europe and gradually shift its business focuseastward shiftIt was previously announced,In 2025, a deep adjustment of the European business will be carried out, including the closure of the headquarters in Ludwigshafen, Germany, and multiple surrounding factories.

BASF recently announced that it plans to complete the integration base in Zhanjiang, China, within the year.2 billion euros in additional investment (accounting for 40% of its annual total budget)。BASF Zhanjiang integrated base as its largest single investment project in China，total investment10 billion euros, recently welcoming a key development.

On March 12, the construction of the liquid bulk cargo terminal, which is part of the base facilities, was officially completed, marking the full connectivity of its logistics system. The core equipment of the baseis1 million tons/year ethylene cracking unit，planned forBy the end of 2025, it will be put into production, and the accompanying downstream facilities such as ethylene oxide, polyethylene, and acrylic acid will be activated simultaneously, covering multiple industries including automotive, construction, high-speed rail, electronics and electrical appliances, food packaging, household and personal care, aerospace, and pharmaceuticals.ofrequirement

In addition, BASF Shanghai Polyurethanes Co.The MDI expansion project has passed the environmental assessment, and it is planned to be constructed in two phases. The first phase of renovation will start in June 2025, and the annual production capacity of crude MDI will be increased from 240,000 tons to 400,000 tons.

BASF Asia Large Projects President Lin Hanping stated that the Chinese market size accounts for 40% of global chemical sales, and by 2030 it may reach 50%. The Zhanjiang base will help to shorten the delivery cycle in the South China market and reduce overall costs.

BASF has expressed consistent confidence in the Chinese market, acknowledging short-term challenges but emphasizing that the long-term growth potential of the Chinese market is enormous in the future.In 10 years, three-quarters of BASF's production capacity will come from China.

at present,BASF owns in Chinasix majorImportant production bases, including the Shanghai Pudong Science and Technology Innovation Park, Shanghai Caojing base, Chongqing base, Nanjing integrated base, Nanjing base, and Zhanjiang integrated base. The product range is diverse, covering multiple fields, providing significant support for the chemical industry development in China and the Asia-Pacific region.

shift of focus to the eastThere are multiple complex reasons behind this. The continued weakness of the European economy has led to weak growth in demand for chemical products, severely limiting market space.

At the same time, the uncertainty of U.S. tariff policies has increased the risks and costs of exporting European chemical products, further compressing profit margins. Additionally, the rapid rise of competitors from China, the Middle East, and other regions has gradually eroded the market share of European chemical companies globally.

II. Multinational Giants Make Their Moves, China Market Becomes the New Battlefield

special plastics perspective found,Since the beginning of 2025, multinational chemical companies have been making frequent moves in the Chinese market, from expanding production bases to deepening technological cooperation. A series of major investment projects landing in China confirms its status as a core growth pole for the global chemical industry. Shell, Saudi Aramco、Toray, ClariantGlobal chemical giants continue to deepen their presence in the Chinese market by increasing high-end production capacity and green technology, driving the industrial chain towards higher value-added areas.

Shell"Slim Down in Europe and America, Double Down on China" Strategy Deepens

Shell recently announced the sale of some chemical assets in Europe and America to optimize its global layout, while increasing investment in China. The final investment decision for the expansion project of the CNOOC and Shell Petrochemicals Company Limited's Daya Bay petrochemical complex in Huizhou has been approved, with plans to construct new facilities.1.6 million tons/year ethylene cracking unit and 320,000 tons/year specialty chemicals production line, focusing on the production of high-end materials such as polycarbonate, targeting the demand in new energy equipment and electrical and electronic fields.

This layout is highly aligned with Shell's strategy of "transforming towards high-value-added products" and also resonates with China's "dual carbon" goals in promoting green chemicals.

Japan Toray (Toray: Increasing Efforts in Automotive Lightweighting and Electronic Materials

In January 2025, Toray of Japan announced the addition of a resin compound production line in Foshan, with an expected start of production in April. The products will be used for electronic and electrical components as well as lightweight automotive parts, strengthening its penetration into China's high-end manufacturing sector.

Clariant (Clariant: Asia's first halogen-free flame retardant plant put into operation

Swiss chemical company ClariantIn 2024, the first halogen-free flame retardant production base in Asia was established in Daya Bay, Huizhou, with a total investment of 100 million Swiss francs. The products cover fields such as electric vehicles and 5G communications. The second production line has been put into operation in 2024, demonstrating its deep commitment to China's new energy industry chain.

Saudi Aramco (Saudi Aramco: Integrated Refining and Petrochemical Projects Reshape Regional Landscape

The Saudi Aramco joint venture with Sinopec and Fujian Refining & Petrochemical for the second phase of the Gulei refining and petrochemical integration projectCompletion of the design bid in February 2025, with a total investment of 71.1 billion yuan, planning to build the world's largest ethylene plant with an annual production capacity of 1.5 million tons, targeting the high-end polymer and engineering plastics market. In addition, it has acquired a 10% stake in Hengli Petrochemical, deepening the integration of the polyester industry chain.

ExxonMobil (ExxonMobil: Huizhou Ethylene Project Seizes New Energy Materials

ExxonMobil Huizhou Ethylene Project Phase IAchieve the commissioning of the linear low-density polyethylene plant in February 2025, with a total investment exceeding 30 billion yuan, focusing on supplying lightweight materials for new energy vehicles and the high-end packaging market. In the future, it will also expand production lines for high-value-added chemicals.

Nippon Paint (Nippon Paint: 3 billion yuan layout for eco-friendly coatings

Nippon PaintIn February 2025, invest 3 billion yuan in Quanzhou to establish the Haixi headquarters, increasing the production of water-based coatings, responding to China's environmental policy upgrade demand for low-VOC products, while optimizing the supply chain in the South China market. 

III. China Chemical Industry: Opportunities Abound, Bottlenecks Await Breakthrough

China's massive market demand and relatively stable energy prices are attracting multinational giants to shift high-value-added production capacity eastward. If Europe cannot solve the balance between energy costs and innovation investment, it may completely lose its traditional chemical industry advantages.

Despite China's chemical industry having already assumed a dominant position globally, it still needs to overcome electronic chemicals (import dependence exceeds70%), high-performance membrane materials, and other technological bottlenecks. Breakthroughs in these key areas are crucial for achieving comprehensive autonomy and control in the chemical industry and are also essential for China to further consolidate and enhance its position in the global chemical landscape.

In the future, China's role will become a key variable in reshaping the global chemical industry landscape, let us wait and see.

Editor: Carrie