BASF, SINOPEC in $900m expansion at Nanjing site

Beijing, China – BASF and China Petroleum & Chemical Corp. (Sinopec) are seeking Chinese government approval for a planned $900-million expansion of their Nanjing chemicals site, which is operated by the BASF-YPC Co. Ltd joint venture. Under a  feasibility study, the new activities are expected to come on stream stepwise starting already this year; with a cracker expansion scheduled for 2009/2010.

The expansion plan for the Nanjing site covers:

· Expansion of the steam cracker from 600 ktpa to around 750 ktpa of ethylene per year.

· Expansion of the ethylene oxide (EO) plant and development of EO derivatives to strengthen the ethylene value chain by producing non-ionic surfactants for detergents and the solvent butylglycol ether. New projects regarding production of ethanolamines and ethyleneamines for agrochemicals and dimethylamine (DMA-3) for flocculants.

· Development of the C4 value chain including C4 specialties: Butadiene and isobutene as chemical raw materials, 2-propylheptanol for a new-generation plasticizer and polyisobutene derivatives as fuel and lubricant additives.

· Extension of the acrylics value chain to produce superabsorbent polymers (SAP) for hygiene and industrial applications.

· Expansion of the existing oxo-alcohol and propionic acid plants.

“The completion of this feasibility study report marks an important step in the cooperation between Sinopec and BASF at BYC. Sinopec will fully support the growth of BYC, which is expected to make significant contribution to meet domestic market demand.” said Wang Tianpu, president of Sinopec.

“The expansion of BYC further strengthens our close partnership with Sinopec and makes BYC even more powerful,” added Dr. Martin Brudermüller, a BASF board director. “The expansion is another significant demonstration of BASF’s long-term commitment to China’s chemical market.”

BASF-YPC started commercial production at a steam cracker as well as nine downstream plants in China in June 2005. The site produces chemicals and polymers for the rapidly growing Chinese marketa and 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.