BASF AG and Sinopec (China Petroleum & Chemical Corp.) plan to embark upon plans to expand its petrochemical venture in Nanjing, East China. At an investment outlay of US$1.4 bln, steam cracker capacity will be expanded to 740,000 tpa from 600,000. The plan comprises expansion of three other existing facilities and 10 new chemical plant start ups. Yangzi-BASF Styrenics Co., a Sinopec and BASF JV, is being merged into BASF-YPC Co.
This capacity increase will satiate growing demand in China that is on the rise. China’s industrial production rose the last month since August 2008, boosting demand for fuel and chemicals.