German chemical company BASF is to invest $10bn in a highly-integrated Verbund chemical site in China's Guangdong province, in what will be the company's third-biggest facility and its largest investment to date. However, shale oil could question the strategic rationale of such plants, according to Ray: ‘Will large mega facilities like this be practical in the distant future as more and more countries develop shale oil, or will we see more regionally based small operations pop up around the globe?’ BASF is looking to develop cracker products and downstream specialties, including surfactants, polymers and engineering plastics, in a location near customers, with China being the world's largest chemical market with 40% market share. The deal comes as Chinese authorities are cracking down on corruption among state-owned enterprises.
German chemical company BASF is to invest $10bn in a highly-integrated Verbund chemical site in China's Guangdong province, in what will be the company's third-biggest facility and its largest investment to date. BASF is looking to develop cracker products and downstream specialties, including surfactants, polymers and engineering plastics, in a location near customers, with China being the world's largest chemical market with 40% market share. The deal comes as Chinese authorities are cracking down on corruption among state-owned enterprises.