BASF (ETR:BAS) and Sinopec to Invest US$1.4 Billion in Nanjing Project Expansion
Ludwigshafen, July 8, 2009 AEST (ABN Newswire) - The German chemical giant BASF (ETR:BAS)(OTC:BASFY) and its joint venture partner China Petrochemical Corporation (Sinopec) are to invest US$1.4 billion to expand their key Chinese chemical production facilities in the eastern Chinese town of Nanjing, Jiangsu Province. Chemicals produced in Nanjing by the partners are targeted towards the building, pharmacy and automotive industries and the expansion of their facilities should be fully operational in 2011.
The Chinese government has approved the feasibility study report on the expansion of the joint venture between its listed subsidiary China Petroleum and Chemical Corporation (NYSE:SNP)(SHA:600028)(HKG:0386) and BASF in Nanjing city.
Sinopec and BASF in March 2008 had reached an agreement to spend US$900 million to expand the 50-50 joint project. The two companies now plan to spend 56 per cent more because of higher costs and extra facilities. The biggest portion of the cost changes is related to the expansion of the steam cracker.
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