BASF's Zhanjiang ethylene plant | Source: Sina Finance (Jan 8, 2026)

BASF has successfully commissioned the 1 million tonnes per year ethylene plant at its newly built Zhanjiang Verbund site in Guangdong province, marking a major milestone in the company's largest single investment project to date. The startup, completed as scheduled on January 7, 2026, makes this the world's first steam cracker using 100% renewable energy to power its main compressors through electric drives (eDrives).

The commissioning of the steam cracker completes the core Verbund complex startup sequence that began in 2025, with n-butyl acrylate production starting in August 2025, followed by glacial acrylic acid in November 2025, and ethylene oxide/ethylene glycol and polyethylene plants also coming online. The facility will serve as BASF's third-largest Verbund site worldwide after Ludwigshafen, Germany, and Antwerp, Belgium.

Investment and Construction Timeline

BASF announced the Zhanjiang project in July 2018 and officially commenced construction in November 2019. Following the final investment decision for the main construction phase in July 2022, the project advanced rapidly with construction completed on schedule and below budget. Total capital expenditure is expected to be approximately €8.7 billion, down from the initially announced €10 billion.​

Fluor Corporation served as the main EPC contractor, achieving mechanical completion after more than 75 million safe work hours without a Lost Time Injury. The project utilized advanced engineering capabilities with a workforce that grew to over 1,000-5,000 employees at the Zhanjiang site, including more than 300 new employees welcomed in July 2023 and over 200 vocational school graduates in 2024.

Production Facilities and Capacities

The Zhanjiang Verbund site comprises a comprehensive integrated petrochemical complex centered around the steam cracker, which processes naphtha and butane feedstocks at approximately 850°C to produce ethylene, propylene, and aromatics.

Photo: BASF Zhanjiang Verbund site by Jan 2024 | Credit: BASF 

The facility includes:

Core Cracker Complex:

• Steam cracker: 1,000,000 tonnes/year ethylene with 100% renewable energy-powered eDrive compressors​

Ethylene Derivatives:

• Ethylene oxide/ethylene glycol: 660,000/830,000
• Polyethylene: 500,000 tonnes/year high-density polyethylene​
• Non-ionic surfactants: 215,000 tonnes/year

Propylene Derivatives:

• Glacial acrylic acid: 2×190,000 tonnes/year
• n-Butyl acrylate: 375,000 tonnes/year​
• 2-Ethylhexyl acrylate: 100,000 tonnes/year​

Oxo Chemicals:

• Butanol/Octanol: 500,000 tonnes/year
• Syngas: 50,000 Nm³/hour (built by Linde Engineering consortium)​
• Neopentyl glycol: 80,000 tonnes/year​
• Formaldehyde: 110,000 tonnes/year
• Methanol: 110,000 tonnes/year
• Citral: 40,000 tonnes/year

Market Applications and Customer Base

Products from the Zhanjiang Verbund site will primarily supply the Chinese market, the world's largest and fastest-growing chemical market. Applications span diverse industries including automotive, construction, high-speed rail, electronics and electrical equipment, food packaging, home and personal care, aerospace, and pharmaceuticals.​

BASF has already begun penetrating downstream markets, with a recent supply agreement with Dongfeng Liuzhou Automobile (through distributor Liuzhou Defu Company) worth 35.13 million RMB for 2026, demonstrating the company's strategy to serve major Chinese state-owned enterprises beyond traditional foreign and joint-venture brands. The neopentyl glycol produced at Zhanjiang, marketed with reduced PCF certification, serves powder coating manufacturers supplying building materials, general industry, home appliances, furniture, automotive, and consumer electronics sectors.

Strategic Significance

Dr. Stephan Kothrade, BASF SE Board member and Chief Technology Officer, noted that the milestone "significantly strengthens BASF's diversified value chains in China and positions us well to support customers across a wide range of industries". The facility represents BASF's local-for-local production strategy, enabling reduced lead times and enhanced supply chain efficiency for customers in China and throughout Asia.​

With the steam cracker now operational, the Zhanjiang site has entered full production mode, completing the startup sequence that began with preliminary units in 2020 and engineering plastics/TPU plants in 2022-2024. The integrated complex will play a pivotal role in strengthening BASF's core businesses and driving sustainable growth across key Asian markets.

Note: This article was compiled using information from the following sources: BASF official press releases and corporate communications​, Guangdong Environmental Protection Bureau official documentation, Baidu news platform (Baijiahao), Linde Engineering press releases​, Chemistry Views and other chemical industry publications​, Fluor Corporation project announcements​, Chinese industry news sources including Sina Finance​, BASF careers and employment information​, Industry analyst reports and market intelligence platforms.
 

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