German chemical giant BASF SE has expanded business in China by commissioning a large-scale steam cracker at its newly developed Verbund production complex in Zhanjiang, located in south China’s Guangdong Province.
The new steam cracker has an annual ethylene capacity of 1 million tonnes, forming the core of the Zhanjiang Verbund site. Notably, it is the world’s first steam cracker whose main compressors are powered entirely by renewable energy, reflecting BASF’s commitment to reducing carbon emissions across its most energy-intensive operations.
The facility is designed to operate under BASF’s well-known Verbund integration model, which links production units, energy flows, and logistics into a single highly efficient system. By integrating upstream and downstream chemical processes, the site aims to lower resource consumption, improve energy efficiency, and minimize environmental impact throughout the value chain.
BASF stated that once fully developed, the Zhanjiang Verbund site will become the company’s third-largest Verbund hub globally, after its flagship sites in Ludwigshafen and Antwerp. The project is positioned as a benchmark for sustainable chemical manufacturing, not only in China but also across BASF’s global production network.
“This important milestone significantly strengthens BASF’s diversified value chains in China and positions us to better support customers across a wide range of industries,” said Stephan Kothrade, member of the board of executive directors of BASF SE and chief technology officer. He emphasized that the Zhanjiang site combines scale, advanced technology, and sustainability to meet long-term market demand.
According to the company, products from the Zhanjiang complex will primarily serve customers in the Chinese market, which BASF identifies as the world’s largest and fastest-growing chemical market. End-use sectors include automotive manufacturing, electronics, construction, consumer goods, and high-performance materials, all of which continue to see strong demand growth in China.
The commissioning of the steam cracker underscores BASF’s long-term confidence in China’s industrial development and its transition toward greener, higher-value manufacturing. As global chemical producers face increasing pressure to decarbonize, BASF’s Zhanjiang investment highlights how large-scale industrial projects can align economic growth with sustainability goals, setting a new reference point for the industry.
