"BASF's largest overseas investment project landed in China!" German Business Daily reported on November 25 that German chemical giant BASF broke ground on the 23rd in a $ 10 billion petrochemical project in Zhanjiang, Guangdong, China. This is the latest foreign company to expand its business in China under the background of China's gradual relaxation of restrictions on foreign investment. It is also the first case of a wholly foreign-owned enterprise in the Chinese heavy chemical industry.
Caspar, an international economist at the University of Hamburg, Germany, told the Global Times reporter that "China has become the world's largest chemical market and is forming the most complete chemical ecosystem. With China's open dividends, European chemical Enterprises are increasing their investment in China. China-EU chemical cooperation is moving towards a fast track. "
"Global Times" reporter learned from BASF's headquarters in Ludwigshafen, Germany, that BASF will first build an equipment for the production of engineering plastics and thermoplastic polyurethanes at its integrated production base in Zhanjiang, Guangdong. The device is expected to be put into operation in 2022, and can produce 60,000 tons of modified engineering plastic products annually, mainly used in the automotive and electronics industries. The base is expected to be completed in 2030, covering an area of about 9 square kilometers.
"This project reflects the speed of China." Olaf, a senior engineer at BASF, told reporters. The project started in July last year and is officially launched now, and it only takes 16 months. This is not possible in Europe and elsewhere.
BASF currently operates six integrated bases worldwide, located in Europe, North America and Asia. After the project is completed, the Zhanjiang base will become the third largest base in the world, after Ludwigshafen in Germany and Antwerp in Belgium, and the largest investment project in BASF's 154-year history. BASF has established a subsidiary in Guangdong to operate the first wholly foreign-owned enterprise in China's heavy chemical industry. This reflects BASF's confidence in the Chinese market.
Bo Mu, CEO of BASF Group, pointed out that BASF is not worried about the impact of short-term economic fluctuations on strategic investments. The life cycle of a chemical project can be as long as fifty or sixty years. The decisive factor driving its investment is the fundamentals of the market. "The fundamentals of the Chinese economy are very good. We believe in the potential of the Chinese market and its future demand for various chemical products. It will be bigger. "
"European chemical companies are setting off a new investment boom in China!" German "Focus" weekly pointed out that, with the exception of BASF, almost all large European chemical companies have successively announced the construction of new projects in China. Shell Oil of the Netherlands previously announced an investment of $ 10 billion in China, including the second phase of the Huizhou CNOOC Shell Petrochemical Base, which has been completed, and expanded again to form a larger “refining and chemical integration base”.
Belgian chemical group Solvay also recently decided to expand its research center in China and increase the production of specialty plastics in China. The company's annual sales in China exceed $ 1 billion. French Air Liquide Group and Chengdu Huaqi Houpu Co., Ltd. completed the establishment of a joint venture company, Liquid Air Houpu Hydrogen Energy Equipment Co., Ltd. in April this year to develop, manufacture and deploy hydrogen refueling stations for fuel cell electric vehicles. Evonik Germany and Chinese companies recently signed a joint R & D agreement to deepen cooperation in the field of animal nutrition probiotics and industrial enzymes. The head of Evonik's animal nutrition business unit said, "Joint research and development will be carried out in the fields of breeding, production, formulation and application of new probiotic solutions to promote innovation."
In February this year, British Ineos Benz Leader completed the acquisition of Total's two polystyrene production bases in China. "The deal not only allows us to better serve existing customers in the region, especially those in the home and electronics industries, but also provides us access to the broader market in China," said McQuad, the company's CEO. The way. "
The chemical industry is one of the largest industrial sectors in Europe, second only to automobile manufacturing, machinery manufacturing and electronics in Germany. The Netherlands also has more than 2,000 top chemical companies. However, markets such as Europe have recently encountered difficulties due to issues such as trade disputes. European major chemical companies have laid off employees. BASF decided to lay off 6,000 people worldwide. Bayer plans to lay off 12,000 people. Covestro plans to reduce 900 employees by 2021. Evonik will reduce 1,000 jobs worldwide ... and In China, European companies are investing more and increasing the number of employees.
International economist Kasper said that Europe and Asia are the main producers of chemical products. European companies have technology, and Asia has markets. In particular, China is already the world's largest chemical market and currently accounts for more than 40% of the global market. This number is expected to approach 50% by 2030. According to Brucella, "To continue to be the world's leading chemical company, we must participate in China's growth."
Kasper said that China currently has an overall upstream and downstream supply chain for the chemical industry, including superior logistics infrastructure, innovative research and development systems, an excellent international business environment, and a highly integrated chemical industry cluster. And the Chinese government has frequently launched new open policies. Provide more comprehensive legal guarantees for foreign-funded companies, including European chemical companies, to operate in China.
Environmental protection is an important issue in the chemical industry. Earlier, some media questioned that European chemical companies were “transmitting pollution” to China.
In this regard, Olaf, a senior engineer at BASF, told the Global Times reporter that this possibility is very low. He believes that, whether in Europe or China, environmental protection has become a characteristic of the industrial chain of European chemical companies. When European companies seek cooperation in China, environmental protection is the top priority. After determining to enter the Chinese market, the company's leadership will first study China's new policies in the field of environmental protection, highlighting the sustainability of investment. Secondly, environmental protection measures are an indispensable part of the entire process from the design to the operation of production plants in chemical companies. European chemical companies' wholly-owned factories in China will also help companies bring the latest European environmental protection technology to China in the most direct way.
