BASF to divest shares in its two joint ventures in China
Published by Poppy Clements,
Editorial Assistant
Hydrocarbon Engineering,
As part of BASF’s global strategy for 1,4-butanediol (BDO), BASF has assessed the market environment and product carbon footprints (PCF) of BDO and its downstream products from different production sites worldwide. BDO value chains are under increased competitive pressure and characterised by global overcapacities. Furthermore, carbide-based BDO and polytetrahydrofuran produced in Korla has a significantly higher PCF due to the use of coal as a base raw material and the high energy intensity of the production process. In the future, BASF will customise its global portfolio of BDO and affiliated downstream products to provide competitive low-PCF offerings.
The situation in the Xinjiang region has always been part of BASF’s overall assessment of its JVs in Korla. Regular due diligence measures including internal and external audits have not found any evidence of human rights violations in the two JVs. Nonetheless, recently published reports related to the JV partner contain serious allegations that indicate activities inconsistent with BASF’s values. Consequently, BASF will accelerate the ongoing process to divest its shares in the two JVs in Korla, subject to negotiations and required approvals of the relevant authorities.
It is important to note that, also in the context of the public reports, BASF has no indication that employees of the two JVs in Korla were involved in human rights violations. The most recent reports relate to BASF’s JV partner, in which BASF does not have a stake.
BASF’s presence in China remains otherwise unchanged, and the company is fully committed to its business activities and planned investments in the country. Already today, Greater China accounts for around half of global chemical production. Global growth in chemical production until 2030 will be driven by Greater China, which will account for around 80% of the total growth during the period from 2022 to 2030.
Read the article online at: https://www.hydrocarbonengineering.com/petrochemicals/12022024/basf-to-divest-shares-in-its-two-joint-ventures-in-china/
You might also like
Low US distillate consumption reflects slow economic activity and biofuel substitution
The EIA reports that US distillate consumption so far this year is lower than usual because of warm winter weather, reduced manufacturing activity, and continued substitution of biofuels in place of petroleum distillate on the US West Coast (PADD 5).