BASF has officially inaugurated its new Verbund chemical complex in Zhanjiang, China, with an investment of nearly €8.7 billion. The site, spanning approximately four square kilometers, is already the company’s third-largest globally and is designed to produce a wide range of basic, intermediate, and specialty chemicals. For overseas buyers, this marks a significant expansion of local production capacity in the world’s largest chemical market, potentially improving supply stability and reducing lead times for downstream industries.
Strategic significance for global chemical supply chains
The Zhanjiang complex represents one of BASF’s most significant industrial developments globally, reflecting a strategic shift toward local production in China. By operating under the Verbund model, the facility integrates multiple processes to optimize resources, reduce costs, and improve energy efficiency. This approach strengthens BASF’s ability to serve key sectors such as transportation, electronics, consumer goods, and personal care with a stable, locally sourced supply.
Sustainability and process electrification
Industrial capacity and operational deployment
The site currently operates over 18 plants and 32 production lines, manufacturing more than 70 different products. It employs over 2,000 people and is designed to use flexible raw materials such as naphtha and butane. The cracker unit has a production capacity of up to 1 million tons of ethylene per year, reinforcing BASF’s position in the global petrochemical market. Phased development allows progressive commissioning and integration of new technologies.
What buyers should watch
For importers and distributors of basic and specialty chemicals, the Zhanjiang complex signals increased local production capacity in China, which may lead to more competitive pricing and shorter delivery times for the Asian market. BASF’s “local for local” approach means that products destined for China and nearby regions will increasingly be sourced from this site. Buyers should monitor the ramp-up of specific product lines and potential shifts in BASF’s export allocations from other global sites.
China sourcing context
With over 140 years of presence in Greater China, BASF’s latest investment underscores the country’s consolidation as a key market for chemical production and consumption. The Zhanjiang complex is positioned as a platform for future growth in Asia, driving innovation alongside customers and partners in one of China’s most dynamic economic regions. This development aligns with global industry trends toward sustainable and integrated chemical production.
Source: Read the original report | Published: March 29, 2026