Top Asian refiner China Petroleum & Chemical Corp, or Sinopec, and German chemical giant BASF AG yesterday agreed to expand their joint venture project in Nanjing, capital of Jiangsu Province, with an investment of US$500 million.
The expansion will include raising the cracker capacity by 25 percent and extending downstream capacities. They are expected to come on stream in 2009, according to a joint statement.
The Nanjing integrated site project is one of the largest Sino-foreign petrochemical joint ventures in China with a total investment of US$2.9 billion in the first phase.
Commercial production started in June last year with an annual capacity to produce 1.7 million metric tons of petrochemical products including ethylene, the raw material used for making many other chemical products. The plant is operated by BASF-YPC Co, a 50-50 venture between Sinopec and BASF.
"This latest strategic investment again demonstrates our long-term commitment to China's growing chemical market," said BASF Chairman Jurgen Hambrecht in the statement.
His Sinopec counterpart, Chen Tonghai, said the expansion is the result of the successful cooperation during the first phase of the project, and fits the development of both parties.
(Shanghai Daily July 11, 2006)