BASF to sell shares in its two joint ventures
In the fourth quarter of 2023, BASF initiated the process to sell its shares in the two joint ventures BASF Markor Chemical Manufacturing (Xinjiang) and Markor Meiou Chemical (Xinjiang) in Korla, China.
As part of BASF’s global strategy for 1,4-butanediol (BDO), BASF has analyzed the market environment and carbon footprint of BDO and downstream products at various production sites worldwide. The BDO value chains are under increased competitive pressure and are characterized by global overcapacities. In addition, the coal-based BDO and polytetrahydrofuran produced in Korla have a significantly higher carbon footprint because coal is used as a raw material and the production process is energy-intensive. Going forward, BASF will adapt its global portfolio of BDO and related downstream products to offer competitive low carbon footprint offerings.
BASF’s presence in China remains otherwise unchanged and the company is fully committed to its business activities and planned investments in China. The Greater China region already accounts for around half of global chemical production. Global chemical production growth until 2030 will be driven by Greater China, which will account for around 80 percent of total growth in the period from 2022 to 2030.
