Sinopec and BASF Completed the Nanjing Integrated Base Expansion Project

On November 10, 2023, Sinopec and BASF held an inauguration ceremony for the expansion of multiple downstream chemical units in the integrated production base in Nanjing. The integrated base is operated by YPC (Yangzi Petrochemical)-BASF, a joint venture established by both parties on a 50-50 basis. This expansion project is a strategic move by both parties to meet the growing needs of various industries in the Chinese market. This includes a newly built tert-butyl acrylate (TBA) unit, which is expected to be put into operation at the end of 2023 and will become the first unit outside Germany to adopt this advanced production technology. TBA is a monofunctional monomer with excellent chemical resistance, weather resistance and hydrophobicity. It is widely used in paper, coatings, adhesives, inks and other industries.

Baocai Yu, President of Sinopec, said: "YPC-BASF's repeated success fully reflects the mutual trust and strong partnership between Sinopec and BASF. The completion of this expansion project marks a new chapter in the close cooperation between the two parties, under the same vision, jointly move towards sustainable development and promote advanced technology."

Dr. Markus Kamieth, member of the Executive Board of BASF Group, said: "I am very proud to participate in celebrating the completion of the Nanjing integrated production base expansion project. This is another milestone in the long-term cooperation between BASF and Sinopec. Among BASF's many joint ventures around the world, YPC-BASF has reached extremely high standards in terms of safety and performance. This expansion will continue to help BASF's business growth in the Chinese market."

The inauguration ceremony celebrates the expansion of YPC-BASF’s production capacity for high-quality chemical intermediates, including propionic acid (PA), propionaldehyde (PALD), refined ethylene oxide (PEO), ethylene amines (EEAs) and ethanolamines (EOAs) . These intermediate products are widely used in agriculture, pharmaceuticals, construction, textiles, daily chemicals and other industries.

By using renewable electricity, the new facility will further reduce carbon emissions during production and provide the market with chemicals with a low Product Carbon Footprint (PCF). For example, YPC-BASF will launch low-carbon footprint propionic acid products in the Asian market. The carbon footprint of its products can be reduced by about 40% compared with similar domestic coal-based products, which will help customers reduce the carbon footprint of their products. [Note: The carbon footprint calculation method of YPC-BASF products follows the ISO14067:2018 standard. In the method review, TÜV Rheinland has certified that the YPC-BASF method for calculating the carbon footprint of products developed by BASF has a scientific basis, complies with the ISO14067:2018 international standard, and reflects the cutting-edge level of technological development (ID -Nr.0000080389; BASF SE - Certipedia).The product carbon footprint comparison referenced is YPC-BASF's assessment of the market average carbon footprint of the relevant products, based on publicly available information on production routes and raw materials used, as well as BASF's own market and technical knowledge. The methodology and data assumptions used are the same as those used to calculate the carbon footprint of YPC-BASF products.]

Yuefeng Gu, Chairman of YPC and YPC-BASF said: "The new equipment adopts advanced technology and first-class standards to optimize resource utilization, while also extending to the upstream and downstream industrial chains, consolidating competitive advantage of YPC-BASF in the dynamic Chinese market.”

Dr. Jianfeng Lou, Chairman and President of BASF China, said: "China is the largest chemical market in the world, and this expansion further enhances BASF's production capacity in the Chinese market. We are confident that we can work together with our local customers to meet the growing market demand with sustainable and innovative products to help all industries in China move towards a sustainable future."