BASF Completes Sale of Shares in Two Xinjiang Joint Ventures Global BDO Market Faces Pressure

BASF has officially completed the sale of its shares in two joint ventures located in Korla, Xinjiang, to Verde Chemical Singapore Pte. Ltd.. The transaction, finalized on April 21, 2025, follows approval by relevant authorities. Financial details remain undisclosed due to commercial confidentiality.

The two entities—BASF Markor Chemical Manufacturing (Xinjiang) Co., Ltd. and Markor Meoa Chemical (Xinjiang) Co., Ltd.—were divested as part of BASF’s global 1,4-Butanediol (BDO) strategy. A comprehensive market evaluation revealed intense competitive pressure, with global overcapacity disrupting supply-demand dynamics and severely compressing profit margins.

Additionally, the production of BDO and its derivatives, such as polytetrahydrofuran, heavily relies on coal-based raw materials and is extremely energy-intensive. The resulting high product carbon footprint (PCF) has become a significant challenge amid growing global focus on sustainability and low-carbon solutions.

Faced with these pressures, BASF’s strategic exit reflects a shift toward aligning its portfolio with market demands and environmental goals. The company’s future direction in China remains a topic of interest as it navigates the evolving global chemical industry.