BASF and SINOPEC have signed a Memorandum of Understanding (MoU) in Beijing to further strengthen their partnership in chemical production in China. The partners intend to build an additional steam cracker and to further expand their existing 50:50 joint venture, BASF-YPC Company, Limited (BASF-YPC). Additionally, the two companies will jointly explore new business opportunities in China’s fast-growing battery materials market. According to the MoU, BASF-YPC will invest in a 50% stake to build a second steam cracker with a capacity of 1,000,000 metric tons of ethylene per year. SINOPEC Yangtzi Petrochemical (YPC) will invest the other 50%. Both BASF-YPC and YPC will have access to all of the products of the new steam cracker to develop their downstream product portfolios.
According to reports from chemeurope, the basic chemicals provided by the new steam cracker would enable BASF and SINOPEC to expand production capacity at BASF-YPC, their existing integrated joint venture “Verbund” site in Nanjing. At a Verbund site, plants are interconnected in order to utilize products, by-products, and energy in the most efficient way, to save costs and minimize environmental impact.