(People’s Daily December 09, 2000)

Sinopec, BASF Launch Joint Venture in Nanjing

China Petroleum and Chemical Corporation (Sinopec Corp) and Germany's BASF AG Friday, December 8, launched a US$3-billion joint venture to build and operate an integrated petrochemical site in Nanjing, East China's Jiangsu Province.

The 50-50 joint venture, BASF-YPC (Yangzi Petrochemical Corp) Company Ltd, is the second largest Sino-foreign chemical company after a US$4-billion project in Guangdong Province of the China National Offshore Oil Corp and the Royal Dutch/Shell Group, which was established in October.

Sinopec Corp and BASF began preparation for the joint venture in 1994. Their feasibility programme was approved by the central government in June this year.

"The launch of BASF-YPC Co Ltd is our first strategic joint venture with multinationals after the successful listing of Sinopec," Li Yizhong, chairman of Sinopec Corp, said at the launch ceremony.

Sinopec Corp, the country's first State-owned conglomerate to go public in Hong Kong, New York and London simultaneously, raised US$3.7 billion in its initial public offering in mid-October.

"About half of the investment in the joint venture will come from the stock markets," Li said.

Yangzi Petrochemical Corp, a Sinopec subsidiary, has now been floated on China's markets.

The joint venture is an important milestone for the Chinese petrochemical sector's efforts to strengthen co-operation with foreign partners, Li said.

Construction of the petrochemical site in Nanjing will start next month.

The site is expected to begin operation in 2004, with an annual capacity of 1.7 million tons of high-quality products, including synthetic resin, synthetic fibre and fine chemicals.

"BASF-YPC Co Ltd is the fulfillment of some of our ambitions in the Asian market," said Jurgen Hambrecht, BASF's board member responsible for the Asian region.

The German petrochemical giant plans that 20 per cent of its global turnover will come from Asia by 2010, Hambrecht said.

The joint venture is also a cornerstone of BASF's strategy to build an Asian manufacturing base that will provide materials for 70 per cent of its sales in the region by 2010, Hambrecht said.

"We have targeted the Chinese chemical market because it has tremendous potential," Hambrecht said.

The joint venture will play an important role in satisfying the mounting demand for chemicals in China, Hambrecht said.

At present, about half of the demands of the domestic chemical market is satisfied by imports.

Sinopec Corp also plans to establish another large-scale chemical project in Shanghai in co-operation with British oil conglomerate BP Amoco next year.

Li predicted that the domestic demand for ethylene will reach 15 million tons per year by 2005.

BASF has nine companies in China with 2,200 employees. Last year, BASF reported sales of about US$614 million in China.

(2001/2/6　ＢＡＳＦ発表）

BASF-YPC and Shaw sign contract for the construction of a steam-cracker

Beijing, February 6, 2001 --- BASF-YPC Company Ltd. today awards a contract to The Shaw Group Inc. for the engineering, procurement, and construction of its 600,000 metric tons-per-year steam cracker and related facilities to be built in Nanjing, China.
Under the contract, Shaw’s subsidiary, Stone & Webster, Inc. (S&W), will be responsible for the engineering, procurement and construction services. Construction will be subcontracted to a Chinese company. Certain plant equipment and materials included in Shaw’s July 2000 purchase of Stone & Webster’s assets will be utilized for this project.
The steam cracker, also known as an ethylene plant, is at the core of the US$2.6 billion integrated petrochemical site jointly owned by BASF Aktiengesellschaft and China Petroleum & Chemical Corporation (SINOPEC Corp.). The parent companies have formed a joint venture BASF-YPC Company Ltd. in December 2000 to build and operate the integrated site, which is expected to go on stream by 2004/2005. Land preparation and engineering work on the 220-hectare site started in January 2001.
Construction is expected to begin in 2002.
J. M. Bernhard, Jr., Shaw’s Chairman, President and Chief Executive Officer, stated, “We are very excited to participate in a world-class project that will utilize our ethylene technology as the cornerstone of a multi-billion dollar complex. Significant opportunities exist in this re-emerging market and we look forward to contributing our talent and technology to the BASF-YPC project, as well as to the future growth of China.”
President of BASF-YPC Company Ltd. Dr. Bernd Blumenberg said the joint venture had made remarkable progress in the last few months in the realization of the project.
“By engaging Fluor Daniel for project management and Shaw for the cracker engineering and construction, we have two very competent international partners to help realize this huge project with globally competitive standards.”

2002/8/19　東洋エンジニアリング

ドイツ・中国合弁の総合石油化学コンビナート向けに
　　　ＴＥＣが大型ＥＰＣプラント２件を同時受注

　東洋エンジニアリング株式会社（ＴＥＣ、取締役社長 広瀬 俊彦）は、三井物産株式会社と丸紅株式会社の協力を得て、世界最大級の総合化学グループであり、中国を重要な戦略市場としているドイツＢＡＳＦ社と、中国最大の総合石油化学企業ＳＩＮＯＰＥＣ社が折半で出資した合弁会社、ＢＡＳＦ−ＹＰＣ社（BASF-YPC Company Ltd.）が中国江蘇省・南京にて計画を進めている総合石油化学コンビナート向け、年産１６万トン・アクリル酸（AA）及び年産２１．５万トン・アクリル酸エステル（AE）と、年産２５万トン・オキソアルコール（OXO）の２つのプラントの国際入札に応札して商談を進めていましたが、この程合意に達し２つのプラントを同時に受注いたしました。これらは全てＢＡＳＦ社の技術をベースとし、ＴＥＣの役務範囲は、詳細設計、機器資材の調達および工事までの一括請負であり、両プラントの完成予定は２００４年第４四半期を予定しております。

この総額２９億ドルもの世界的規模の石油化学コンビナートは、アジア太平洋地区におけるＢＡＳＦ社最大の投資案件であり、またＳＩＮＯＰＥＣ社にとって、このＢＡＳＦ−ＹＰＣ社は、中国最大規模の石油化学コンビナートとしての、「中国初」の外資合弁の石油化学会社です。

ＴＥＣは、昨年完成したＢＡＳＦ社のマレーシアでの合弁会社向けオキソアルコール設備プロジェクトを通して高い評価を受けるとともに、中国において約３０年間にわたり、ＳＩＮＯＰＥＣ社を含む中国の顧客向けに多数のプラント設計・設備・技術の納入実績を有しており、現在もＳＩＮＯＰＥＣ揚子石油化工公司（ＹＰＣ）向けにエチレン設備の能増プロジェクトを実施中です。

中国での長年にわたるＳＩＮＯＰＥＣ社向けプロジェクト実績やマレーシアでのＢＡＳＦ社向けプロジェクトでの成功、ならびにその優れた技術やノウハウ、信頼性の高いプロジェクト遂行能力などが客先より高い信頼を得て、欧州や韓国の競合先との厳しい国際入札競争の結果、ＴＥＣは今回、本石油化学コンビナート向けに２つのプラントの同時受注に至りました。今回の受注を契機にＴＥＣは、ＢＡＳＦ社をはじめとした欧米企業の中国への石化投資計画に対する、ＴＥＣの積極的な参画への大きな足がかりとなることを期待しています。

2005/6/28 BASF-YPC

The Company Successfully Starts Up Verbund Site(2005-06-28)
http://www.basf-ypc.com.cn/en/news/news_detail.php?newsid=109

BASF-YPC Company Limited, a 50-50 joint venture between BASF and SINOPEC, has successfully started commercial production at a steam cracker as well as nine downstream plants at its Nanjing site in China as planned. The 220-hectare site will produce 1.7 million metric tons of high-quality chemicals and polymers per year for the rapidly growing Chinese market. A total of $2.9 billion has been invested in the construction of the integrated Verbund site.

BASF-YPC Company Limited is the largest single investment in BASF's 140-year history and an integral part of BASF's strategy in the Asia Pacific region. Dr. Andreas Kreimeyer, member of BASF's Board of Executive Directors responsible for Asia Pacific, re-emphasized BASF's ambitious goals for the region: "By 2010, BASF aims to generate 20 percent of its sales and earnings in its chemical activities in Asia Pacific, with 70 percent coming from local production. The new Verbund site in Nanjing will make an important contribution toward achieving our goals."

After the groundbreaking of the site in September 2001, the basic mechanical completion was achieved at the end of 2004 and the first product was delivered to customers in January 2005. "The startup of the site in less than four years is a tremendous achievement of which all involved can be proud," said Dr. Bernd Blumenberg, President of BASF-YPC Company Limited. "The support of both parent companies- BASF and SINOPEC -as well as the Chinese government at all levels was crucial in us reaching this milestone."

The main products of the 600,000 metric ton steam cracker, ethylene and propylene, are used as feedstock for the downstream plants. The site also has a gas-fired power plant and an international port on a tributary of the Yangtze River to ensure optimum energy supply and logistics. At the height of construction technical experts from 22 countries and 15,000 workers were on site, working together to build the plants and infrastructure.

The Nanjing site is modeled on the Verbund concept originating from BASF's headquarters in Ludwigshafen, Germany -the world's largest, single-company chemical production complex. By linking manufacturing plants, the company can use products, by-products and energy in the most efficient way, so as to realize cost efficiency and minimize environmental impact. As a result, BASF-YPC Company Limited will make a contribution to the sustainable development of the local economy and the Chinese chemical industry.

2005/9/28　BASF 　　　　　　BASF targets 10 percent of global chemical sales in China by 2010

BASF and SINOPEC Joint Venture Officially Starts
http://www.corporate.basf.com/en/presse/mitteilungen/pm.htm?pmid=1991&id=SK-QV7UwJbcp2Gv

BASF and SINOPEC announced the official opening of their Verbund site in Nanjing, China, at a joint news conference today. The new Verbund site is being run by BASF-YPC Co. Ltd. and is the largest petrochemical project between SINOPEC and a foreign company, with a total investment of $2.9 billion.

“Our project will play an important role in enhancing the international competitiveness of China’s petrochemical industry, and will definitely contribute to the rapid, balanced and healthy development of Nanjing and East China’s economy,” said Cheng Tonghai. SINOPEC Group’s General Manager and Chairman of the Board.

BASF-YPC Co. Ltd. is an integral part of BASF’s strategy for the Asia Pacific region, BASF Chairman Dr. Jurgen Hambrecht explained: “The successful accomplishment of a such a large scale project is due to the tremendous efforts of our employees, our partners and in particular due to the support of the Chinese and German governments. The site will make a substantial contribution to our goal of achieving 10 percent of our global sales in the chemical business in China by 2010.”

Due to the smooth and successful start-up, BASF and SINOPEC will invest in additional downstream plants and in the expansion of the steam cracker at their joint venture site in Nanjing to further strengthen the Verbund synergies. The expansion plans were announced today before the opening ceremony.

Further details on the timing of the expansion and on the capacities of the additional plants will be disclosed soon.

Both partners expressed their satisfaction with the development of BASF-YPC Co. Ltd. The joint venture has been operating commercially since June 2005. The expansion plans highlight the success of the joint venture and the good partnership.

BASF-YPC Co. Ltd. is a 50-50 joint venture between BASF and SINOPEC, founded in 2000. The ground breaking for the site, located in Nanjing, Jiangsu Province, took place on September 28, 2001. BASF-YPC Co. Ltd. successfully started commercial production at a steam cracker as well as nine downstream plants in China in June 2005. These plants are interconnected in order to use products, by-products and energy in the most efficient way, thus realizing cost efficiency and minimizing environmental impact. The 220-hectare site produces 1.7 million metric tons of high-quality chemicals and polymers per year for the rapidly growing Chinese market. The site also has a gas-fired power plant and an international port on a tributary of the Yangtze River to ensure optimum energy supply and logistics.

2006/7/10 BASF

BASF and SINOPEC sign $500 million agreement to expand Nanjing site

Expanding cracker capacity by 25 percent
Extending downstream capacities
Underlining long-term partnership between BASF and SINOPEC

BASF and China Petroleum & Chemical Corporation (SINOPEC Corp.) today signed a $500 million (4 billion RMB) agreement to expand their joint chemical Verbund site in Nanjing.

The agreement was formalized by Mr. Chen Tonghai, Chairman of China Petroleum & Chemical Corporation (SINOPEC Corp.), and BASF’s Chairman of the Board of Executive Directors, Dr. Jurgen Hambrecht, during a signing ceremony in Berlin.

“The expansion of BASF-YPC Co. Ltd. is the result of our continuous successful cooperation during the first phase of the project, and fits the development of both parties, while further strengthening the cooperation between Sino-German enterprises,” said Chen Tonghai.

“The success of this joint venture is symbolic of the strong partnership between BASF and SINOPEC, and between Germany and China,” said Hambrecht. “This latest strategic investment again demonstrates our long-term commitment to China’s growing chemical market.”

The new activities are expected to come on stream in 2009.

Both companies also agreed to integrate their second joint operation Yangzi-BASF Styrenics (YBS) in Nanjing into BASF-YPC Co. Ltd. to increase efficiency and make full use of existing synergies.

BASF-YPC Co. Ltd. is an integral part of BASF’s strategy for Asia Pacific. The site will make a substantial contribution to BASF’s goal of achieving ten percent of its global sales and earnings in the chemical business in China by 2010.

Note to Editors:
BASF-YPC Co. Ltd. is a 50-50 joint venture between BASF and SINOPEC, founded in 2000, with a total investment of $2.9 billion in the first phase. The ground breaking for the site, located in Nanjing, Jiangsu Province, took place on September 28, 2001. BASF-YPC Co. Ltd. successfully started commercial production at a steam cracker as well as nine downstream plants in China in June 2005. These plants are interconnected in order to use products, by-products and energy in the most efficient way, to save cost and minimize environmental impact. The 220-hectare site produces 1.7 million metric tons of high-quality chemicals and polymers per year for the rapidly growing Chinese market. The site also has a gas-fired power plant and an international port on a tributary of the Yangtze River to ensure optimum energy supply and logistics.

BASF has been a committed partner to Greater China since 1885. It is one of the biggest foreign investors in the Chinese chemical industry. The company currently has over 4,000 employees and operates 16 wholly owned subsidiaries and eight joint ventures. In order to stay in tune with local markets, the company maintains eight offices in Hong Kong, Beijing, Shanghai, Guangzhou, Nanjing, Qingdao, Chengdu and Taipei. In 2005, BASF achieved sales of close to EUR 2.8 billion in Greater China.

Platts 　Jun 26 2007

China BASF-YPC mulls relocation, environment concerns on flaring

China's BASF-YPC Co. is assisting local state authorities develop a relocation plan for its petrochemical complex at Nanjing, China, due to environmental concerns about flaring at the facility, a BASF spokesman said Tuesday.

BASF-YPC uses flaring to burn off excess gases which cannot be used for production. The process has created alarm among the farming community in the surrounding areas, prompting them to appeal for plant's relocation.

On Monday about 300 farmers ((mostly vegetable farmers) gathered at the firm's Nanjing hub to protest against flaring at the steam cracker. The protest started from 6:30am local time on Monday. The group was dispersed by around 10.45am following intervention of local authorities and the police.

The spokesman said operations at BASF-YPC's petrochemical complex were not disrupted by the incident.

"The company understands the impact of flaring on the farmers' daily life and tries its best to avoid it," BASF spokesman Wylie Rogers said. "Meanwhile, the company cooperates with local authorities to help develop a relocation
plan," he said.

The steam cracker has an ethylene capacity of 600,000 mt/year, which will be expanded to 740,000 mt/year by 2009. The cracker is linked to a 300,000 mt/year ethylene glycol plant, a 400,000 mt/year low density polyethylene plant, a 250,000 mt/year oxo-C4-alcohols plant and a 160,000 mt/year acrylic acid plant.

BASF-YPC is a 50:50 joint venture between Germany's BASF and China's Sinopec. Its $2.9 billion petrochemical complex occupies a site covering 220 hectares, adjacent to Yangzi River in the Luhe district of Nanjing in Jiangsu province.

2008/1/14 Platts

Merger of BASF, Sinopec's Nanjing JVs in progress

A planned merger of German-Sino petrochemicals companies BASF-YPC Co. Ltd. and Yangzi-BASF Styrenics was in process, although there was no definitive time for its completion, a BASF executive said Friday.

BASF AG announced its intention to integrate the two Nanjing-based companies in July 2006.

"The merger is planned in line with our overall Nanjing Verbund expansion plans, which as you know are still under way," said the source Friday. But while the Nanjing Verbund expansion plans were scheduled for completion in 2009, the same could not be said for the merger, he added.

Other sources have told Platts that complications relating to share transfer arrangements and approval from the Chinese government have hindered the merger's progress.

BASF and its partner, China's state-owned Sinopec, can expect to tap synergies through the consolidation of their joint ventures. Yangzi-BASF Styrenics produces styrene monomer, polystyrene and expandable PS using ethylene feedstock supplied by BASF-YPC. YBS is the smaller entity and will come under the BASF-YPC banner when they merge.

BASF-YPC has the capacity to produce 600,000 mt/year of ethylene and plans are under way to add another 150,000 mt/year by 2009. Its derivative plants comprise assorted amine, oxo-alcohol, glycol and polyolefin facilities. YBS has the capacity to produce 130,000 mt/year of ethylbenzene, 120,000 mt/year of styrene monomer, 200,000 mt/year of polystyrene and 52,000 mt/year of EPS. BASF and Sinopec have equal shares in BASF-YPC, but BASF has a larger (60%) stake in YBS.

The "Nanjing Verbund" expansion refers to a $900 million investment to boost BASF-YPC's ethylene and ethylene oxide capacities, along with the establishment of ethylene oxide derivative plants.

Other new downstream capacities, such as plants for the production of butadiene, isobutene, 2-propylheptanol, polyisobutene derivatives, and super absorbent polymers, are included in the project's scope as well.