BEIJING, Dec. 17, 2010 /PRNewswire-Asia/ --
On the eve of the 10th anniversary of BASF-YPC, BASF and SINOPEC have signed a Memorandum of Understanding to jointly explore the further expansion of their integrated petrochemical joint venture, BASF-YPC Co., Ltd.
The new projects under consideration will extend the C3 and C4 value chains, including the construction of a new acrylic acid facility with a capacity of 160,000 tons per year, a new butyl acrylate plant, as well as capacity increases at the 2-propyl-heptanol, styrene monomer, and non-ionic surfactants plants. The superabsorbent polymers (SAP) plant, to be constructed as the final part of the ongoing expansion project, will be supplied with feedstock from the acrylic acid facility. A new world-scale hydrogen peroxide-propylene oxide (HPPO) facility is also included in the new investments under consideration. The new investments under consideration collectively total approximately USD 1 billion.
The final scope of the investments under consideration will be determined following joint feasibility studies for each of the projects.
The agreement was signed today in Beijing by Dr. Wang Tianpu, Vice Chairman and President, China Petroleum & Chemical Corporation (SINOPEC), Dr. Ma Qiulin, General Manager of SINOPEC Yangzi Petrochemical Company Limited, Dr. Martin Brudermüller, member of the Board of Executive Directors, BASF SE, responsible for Asia Pacific, and Dr. Albert Heuser, President, Asia Pacific, BASF.
Mr. Wang Tianpu, President of SINOPEC, said, "BASF-YPC is a role-model of successful cooperation between BASF and SINOPEC, also a good example of SINOPEC's international partnerships. With this further development of BASF-YPC, both parties will foster the integration of BASF-YPC, broaden the portfolio of downstream products in Nanjing, and meet the increasing demands on new materials in the East China region and across the country." During the 11th Five-Year Plan period, SINOPEC has established 16 joint ventures with foreign companies, and the total foreign investment reached USD 4.639 billion.
"As the Chinese market continues its rapid growth, we are committed to enhancing our position by further expanding our specialty chemicals business. Our longstanding partnership with SINOPEC will be intensified, and our unique integrated production system will be further strengthened by extending value chains as well as by adding new product lines," said Brudermüller. "According to BASF's Asia Pacific Strategy 2020, we intend to produce 70% of our Asia Pacific sales in the region, and the continued development of our local production base in China is crucial to achieve this." BASF plans to invest approximately EUR 2 billion in Asia Pacific between 2009 and 2013.
The new projects under consideration together with the current production plants provide raw materials for growing customer industries for environmentally-friendly industrial and household applications in China such as coatings or cleaning and detergents.
In accordance with the philosophy shared by SINOPEC and BASF, BASF-YPC also demonstrates sustainability in its operations as it has maintained similar levels of energy consumption and emissions during the past few years, despite an increase in production. Over 90% of the waste generated is recycled or reused, while 98.5% of water is reused.
These planned new investments are a further expansion for BASF-YPC, adding to the currently ongoing joint investment of approximately USD 1.4 billion in state-of-the-art technologies to produce downstream specialty chemicals for the Chinese market, serving multiple industries such as construction, electronics, pharmaceutical, automotive and chemical manufacturing. Construction is approximately 50% complete.
Since 1986 when BASF and SINOPEC established their first joint venture, Shanghai Gaoqiao BASF Company Limited, they further jointly invested in the Yangzi-BASF Styrenics Company Limited in 1997, BASF-YPC Company Limited in 2000 and the expansion project of BASF-YPC in 2009. The total joint investment is more than RMB 33 billion (approximately EUR 3.7 billion).
BASF-YPC Co., Ltd. is a 50-50 joint venture between BASF and SINOPEC, founded in 2000, with a total investment of US$2.9 billion in the first phase and is one of China's largest petrochemical joint ventures. BASF-YPC Co., Ltd. began commercial production at a steam cracker as well as nine downstream plants in June 2005. These plants are interconnected in order to use products, by-products and energy in the most efficient way, to save cost and minimize environmental impact. The site produces high-quality chemicals and polymers for the rapidly growing Chinese market. The site also has a gas-fired power plant and an international port on the Yangtze River to ensure optimum energy supply and logistics.
Sinopec Corp. is a Chinese company that has been listed in Hong Kong, New York, London and Shanghai. The Company is an integrated energy and chemical company with upstream, midstream and downstream operations. The principal operations of Sinopec Corp. and its subsidiaries include: exploring, developing, producing and trading crude oil and natural gas; processing crude oil into refined oil products; producing, trading, transporting, distributing and marketing refined oil products; and producing and distributing chemical products. Based on 2009 turnover, Sinopec Corp. is the largest listed company in China. The Company is one of the largest crude oil and petrochemical companies in China and Asia. It is also one of the largest gasoline, diesel and jet fuel and other major chemical products producers and distributors in China and Asia.
BASF is the world's leading chemical company: The Chemical Company. Its portfolio ranges from chemicals, plastics and performance products to agricultural products, fine chemicals and oil and gas. As a reliable partner BASF creates chemistry to help its customers in virtually all industries to be more successful. With its high-value products and intelligent solutions, BASF plays an important role in finding answers to global challenges such as climate protection, energy efficiency, nutrition and mobility. BASF posted sales of more than €50 billion in 2009 and had approximately 105,000 employees as of the end of the year. Further information on BASF is available on the Internet at www.basf.com.