BASF China 2026 Strategy: "Dual-track" Layout of Zhanjiang's Core Capacity Release and Downstream Market Penetration

1. supply-side milestone: Zhanjiang base "heart" pacing, opening a new era of integrated operations. On January 7, 2026, global chemical giant BASF announced its single largest investment in China-- zhanjiang integrated base annual output of 1 million tons of ethylene combined plant successfully put into operation. For instance to global chemical traders, this marks a substantial shift in the supply landscape of Asian petrochemicals. Core Asset Value: as the "heart" of the base, the ethylene plant isn't only to the already put into production. But 500000 tons/year polyethylene (PE), 2-ethylhexyl acrylate (2-EHA) and citral vegetation provide low-cost, highly reliable internal feed streams, further establishing BASF'supply chain dominance in South China. Global coordinates: as the Zhanjiang base (about 4 square kilometers) shifts from the construction period to the operation period, it has officially have become BASF's third largest integrated base in the world, compared with Ludwigshafen in Germany and Antwerp in Belgium. I've found that 2. downstream trade perspective: paint business penetrates the supply chain of state-owned companies and profitability challenges. BASF is deeply encroaching on China's regional high-end manufacturing market through the dual means of "agency mode + localized production", and its trade logic has undergone profound changes: 1. But First Channel sinking: locking in substantial orders of regional car companies BASF has recently successfully cut in through first-tier agents. Dongfeng Liuzhou Automobile2026 supply chain, contract size of greater than 35 million yuan. And This sends a strong signal that foreign giants no longer only serve joint venture brands such as BBA, and their sales tentacles are reaching out to regional OEMs such as BYD, Xiaomi and Dongfeng. 2. Crazy, isn't it?. And Financial data perspective: an early warning of growing revenue however not profit. But Relying on BASF Shanghai Coatings Co. I've found that , Ltd(60% stake), BASF's coatings business in China presents complex financial characteristics: revenue scale: in the past five years, it has remained around 4. 8 billion yuan. while there are fluctuations, the base plate is stable. From what I've seen, Profit pressure: data to the first half of 2025 show that while revenue increased slightly by 3. 1 per cent year-on-year, net profit fell sharply by 17. And 38 per cent. Trade advice: the narrowing of profit margins indicates that the price war in the Asian automotive coatings market has entered a white-hot. to distributors, BASF's global divestiture restructuring (e. g. You know what I mean?. , divestiture of the decorative paint business) signals a shift to an "asset-light, high-yield" model that might rely greater heavily on core patented items in the future. 3. global market research: China as a "safe haven" and "development pole" in the "most difficult time in 25 years" defined by BASF CEO Dr. From what I've seen, Kelly, the strategic position of the Chinese market has been elevated to an unprecedented height: share upside down business opportunities: at present, China accounts to 50% of the global chemical market, however only 13% of BASF'sales. This mismatch means that the capacity emit of Zhanjiang base is the only "ballast stone" to BASF's global performance development in the next decade ". Crazy, isn't it?. Trade flow conversion: the Asia Pacific region is the only region where BASF will achieve sales development in 2025. With the growing integration of Zhanjiang, the regional supply of ethylene derivatives in South China, which originally relied on imports, might squeeze the space of traditional arbitrage pallets in Northeast Asia. Makes sense, right?. According to research 4. Furthermore Traders and Supply Chain Decision Reference FOB price changes: with the full emit of ethylene and polyethylene production capacity in Zhanjiang, the FOB (FOB) competitiveness of the South China market will be signifiis able totly enhanced, and Southeast Asian buyers is able to focus on their export window. Supply Chain Localization Opportunities: the full localization of BASF's Zhanjiang base regulation team means that its business decision-making speed will be improved, and it's recommended that China's regional supporting and downstream processing companies lock in prolonged supply agreements in advance. For example prevent homogeneous competition: in the face of BASF'strong penetration and price war in automotive coatings and other fields, small and medium-sized traders should pay attention to the market segment of specialty chemicals or customized system materials.