BASF Launches Major Green Production Site in China's Zhanjiang, Its Largest Global Investment
German chemical giant BASF has commenced full operations at its 8.7 billion euro integrated production site in Zhanjiang, China, marking its largest single investment globally. Designed to run on 100% renewable electricity, the facility aims to significantly cut carbon emissions, setting new benchmarks for sustainable chemical production. This initiative aligns with China's green development goals and reflects a broader trend of increased German investment in the region, driven by market opportunities and governmental support.
German chemical company BASF has officially launched full operations at its integrated production site in Zhanjiang, south China, representing its largest single investment globally, totaling 8.7 billion euros (approximately $10 billion). This monumental project underscores BASF's commitment to sustainable chemical production, as the facility is meticulously designed to operate on 100% renewable electricity and utilizes electric-driven compressors. Haryono Lim, president of Mega Projects Asia at BASF, highlighted the site's ambition to reduce its carbon footprint significantly, aiming for 1.7 million tonnes of CO2 from an potential 4 million tonnes.TheThe Zhanjiang site is strategically aligned with China's 15th Five-Year Plan, which prioritizes green development and industrial upgrading. Its location was chosen for its proximity to the Pearl River Delta, access to a deep-water port, and robust local government support. Yang Jiedong, director of the administrative committee of Zhanjiang Economic and Technological Development Zone, emphasized the project's pivotal role in boosting the region's low-carbon hydrogen transition, attracting related industries, and developing a national pilot zone for zero-carbon industrial parks.BASF's substantial investment is part of a wider trend among German industrial giants expanding their footprint in China. Companies like Covestro, Siemens Healthineers, and Volkswagen have also accelerated green investments and R&D efforts in the country. A December 2025 survey by the German Chamber of Commerce in China indicated that 93% of German companies plan to remain in China, with 53% intending to increase their investments. BASF CEO Markus Kamieth attributed this confidence to China's continued efforts in market opening and supporting rule-based trade relations globally.
