BASF and BardeFu Sign Strategic Deal for 500000 Tons Acrylic Ester Supply Zhanjiang Megasite Faces Low Margins Amid China Glut

BASF and BardeFu have inked a landmark strategic agreement to secure supply of butyl acrylate (BA) and 2-ethylhexyl acrylate (2-EHA) from BASF’s Zhanjiang integrated site, aiming to meet surging demand for waterborne emulsions in China’s booming construction coatings market. BardeFu, recognized as Asia’s top supplier for architectural water-based emulsions and specialty additives, operates eight production bases across China and has been listed among the “Top 500 Most Valuable Chinese Brands” for six consecutive years.

BASF’s Zhanjiang complex is set to deliver 400,000 tons of BA and 100,000 tons of 2-EHA annually after its acrylics and esters units come online in 2025. The project recently completed mechanical construction for its first GAA and BA plants, with raw material shipments already arriving at the port.

Butyl acrylate, a key component for adhesives and coatings, accounts for nearly 80% of China’s acrylate ester output, while 2-EHA is vital for both adhesives and paints. Major players in this market include BASF, Arkema, DIC, Dow, LG Chem, and several leading Chinese firms.

However, Dr. Dirk Elvermann acknowledged that the Zhanjiang site’s initial profitability will fall short of prior expectations due to a severe industry downturn and massive overcapacity in China. BASF’s Chairman, Dr. Markus Kamieth, stressed that while the market is expanding, intense competition and a supply glut have sharply compressed margins. He remains confident in the Zhanjiang site’s cost and operational advantages, predicting that, over time, supply and demand will balance and profit levels will normalize.

This high-capacity partnership is poised to reinforce both companies’ competitive edge, even as China’s chemical sector faces unprecedented margin pressure.