BASF Group is the third largest multinational chemical company in the world and the second largest in Germany. It was ranked among the "500 largest companies in the world" selected by the American "Happiness" magazine in 1996. No. 82. BASF Group has operations in more than 170 countries and regions around the world, with more than 140 production plants in 39 countries and produces more than 8,000 products. Its main business distribution includes:
·Health care. and nutritional products
·Dyes and coatings
·Oil and natural gas
·Chemicals
·Plastics and fibers
·Other businesses
BASF Group is a listed company, and its shares are listed in 78 major cities in Europe. The group is headquartered in Ludwigshafen, Germany.
1. A brief history of development
The development history of BASF Group over more than 130 years can be divided into six stages
1. The dye period (1865-1901)
This period. During this period, after more than 30 years of development, the Baden Aniline Alkali Plant, the predecessor of the BASF Group, continued to launch new dyes through the unremitting efforts of its research department, making it the largest dye manufacturer in the world in 1865. On September 27, the "Baden Aniline Alkali Plant" was established by F. Engelhom. At that time, there were only 30 employees. Engelhom was the owner of a gas plant. He began to produce coal tar in 1961. Produced aniline and fuchsin. In 1870, the Baden Aniline Alkali Factory produced onionone dyes from coal tar, and then produced methylene blue, fast red, auramine, indigo, indanthrene blue and other dyes, and in Germany, France, The United States, Russia and other countries established dye production and sales institutions. In 1888, they developed a contact method for sulfuric acid production and began to produce high-concentration sulfuric acid. By 1900, the Baden Aniline Alkali Plant had become one of the largest chemical plants in the world. It has 6,207 employees, including 148 chemists, 75 engineers, and 305 sales staff.
2. Fertilizer period (1901-1923)
During this period, BASF The Group (Baden Aniline Alkali Plant) developed the HaberBosch ammonia synthesis process and successfully synthesized urea, opening a new chapter in its historical development.
In 1907, the Baden Aniline Alkali Plant cooperated with Bayer and Bayer. Akfa Company jointly acquired the Auguste Victoria CoaI Mine to ensure the supply of raw materials. In 1908, the Baden Aniline Alkali Plant developed high-pressure ammonia synthesis using hydrogen and nitrogen. Process (Haber--Bosch process). In 1910, a high-efficiency iron catalyst for the synthesis of ammonia was invented. In 1913, the first ammonia synthesis unit was built in Oppau, and the industrial production of ammonia was started. In 1914, the Limburgethof Agricultural Research Station was established for agriculture. The foundation was laid for the development of chemistry.
When World War I broke out in 1914, the factory began to produce explosives, poison gas and other military supplies.
In 1921, an explosion occurred at the ammonia plant in Oppau, causing serious damage to the ammonia plant.
In 1922, the Baden Aniline Alkali Works developed synthetic urea. Synthetic methanol was developed in 1923. In 1924, the lignite ebullating bed gasification technology, the Wengler process, was developed.
3. New high-pressure synthesis technology development stage (1923-1943)
During this period, the development of high-pressure synthesis technology based on the Haber-Bosch process became the focus of BASF Group's business activities. In addition, with the rise of the automobile industry, BASF Group has also begun to focus on the development of related industries such as fuel, synthetic rubber, surface coatings, dye raw materials, and automotive reagents.
In 1925, Baden Aniline Alkali Factory and Bayer. Hearst and five other companies merged into I.G. Farben.
In 1927, BASF Group produced the first batch of gasoline.
In 1929, Farben began the industrial production of styrene. In 1930, it began the industrial production of polystyrene, polyacrylonitrile, and polyacrylate. In 1931, it developed polyisobutylene and polyvinyl chloride)
In 1935, Farben produced the world's first audio tape.
In 1937, Farben developed polyethylene.
After the outbreak of World War II in 1939, Farben built a large-scale device to produce sodium butadiene rubber from acetylene and formaldehyde to produce military supplies. 4. Period of destruction and reconstruction of main production facilities (1943-1953)
At the end of World War II, 33% of BASF Group plants were completely destroyed and 61% were severely damaged. After the war, BASF Group began to rebuild the factory/
In 1948, a major explosion occurred in the factory, and the newly restored factory was bombed again.
In 1950, the fluidized bed sulfuric acid production process was developed.
In 1951, expandable polystyrene was developed.
In 1952, Farben AG was dissolved, and Alden Aniline Company was re-registered as one of the three successors of Farben AG.
5. The beginning of the petrochemical industry (1953-1965)
Baden Aniline Company inherited the fine tradition of focusing on research and development inherited from the pre-war period, and continued to maintain its leadership in the process development of the emerging plastics industry. status. Petroleum replaced coal as the raw material for petrochemical industry, marking the beginning of the petrochemical industry.
In 1973, Baden Aniline Company officially adopted the name BASF.
In 1975, BASF produced MDI in Antwerp.
In 1977, BASF put into operation a 90,000-ton/year device for producing acrylic acid from propylene.
In the 1980s, the BASF subsidiary focused its business expansion in South Asia and the Far East. The initial investment focus was South Korea. Since the 1990s, the BASF Group has made China the center of its business development.
In 1980, it established a joint venture with South Korea's Hyosung Company to produce polystyrene and expandable polystyrene.
In 1981, BASF Group built a 450,000-ton/year steam cracker in Ludwigshafen to ensure its supply of ethylene and petrochemical raw materials.
In 1982, BASF Group acquired a vitamin factory in Denmark. In 1984, it established a joint venture with Hungary to produce polyurethane.
In 1985, the BASF Group acquired a coatings factory and a composite materials factory in the United States, as well as Monsanto's synthetic fiber intermediate production plant in Hill Sanders, UK.
In 1986, BASF Group reorganized its institutions in the United States and merged them into BASF Corporation.
In 1988, BASF Group acquired the polymer dispersion business of Canada's Biolan Mountain Company. Established a joint venture with Hyosung Corporation in South Korea to build an MDI production plant.
In 1989, the BASF Group used its own technology to produce methyl methacrylate, acquired two plexiglass plants in the United States and Spain, and closed the Mannheim refinery.
In 1991, BASF sold the August Victoria coal mine.
Since the 1990s, BASF Group has established numerous production joint ventures or wholly-owned production facilities in Shanghai, Nanjing, Shenyang and Jinling, China. In 1996, the construction of an integrated petrochemical plant in Nanjing began, which was its largest investment project in China.
II. Organizational Structure
The BASF Group is composed of approximately 350 subsidiaries around the world in which the core company BASF and ABSF directly or indirectly hold more than 50%.
BASF Group implements a management committee leadership system under the supervision and guidance of the Supervisory Board. The Group Management Committee has an executive committee responsible for daily business management and leading the work of department managers. At present, the Group Management Committee has 20 operating departments, 12 regional management departments, 11 corporate departments and 6 functional departments in charge of various businesses, implementing a matrix organizational management system.
3. Business conditions
1. Scale
In 1996, BASF Group’s sales reached US$31.468 billion, an increase of 5.5% over the previous year; net profit reached US$1.800 billion, an increase of 12.9% over the previous year; the shareholder equity reporting rate was 14.8%; an increase of 5.5% over the previous year; An increase of 0.5 percentage points; capital expenditures were 2.4277% billion US dollars, an increase of 20.3% over the previous year, and total asset value increased from US$27.1226 billion in 1995 to US$28.2052 billion; the asset-liability ratio was 53.13%, a decrease of 4.22 percentage points from the previous year.
Table 1 and Table 2 show the distribution of BASF Group's sales by department and region in 1995 and 1996 respectively.
Due to the diversified operations of BASF Group, although in 1996 due to the weak market, the income of chemicals, plastics and fibers and its business areas declined to varying degrees, health and nutritional products, dyes and The three areas of coatings, oil and natural gas have experienced relatively large revenue growth, so their overall operating conditions are still good. BASF Group has operations all over the world, with Europe as its most important market, accounting for approximately 63% of sales and 75% of net profit. After the Asia-Pacific region, South America became the second fastest-growing region for BASF Group sales. In 1996, sales in this region increased by 15% compared with 1995. The growth rate of the Asia-Pacific region, which is the focus of business expansion, also reached 11.7%.
2． Business Distribution
BASF Group operates a wide range of businesses, which can be divided into six categories. The main businesses are:
·Health and nutritional products: pharmaceuticals, fine chemicals, fertilizers, plants Protective products
·Coatings and dyes: various dyes, pigments, coatings, processing aids, dispersions, paints and printing systems
·Chemicals: basic chemicals (ethylene, Propylene, acetylene, syngas, ammonia, methanol, sulfuric acid, chlorine, caustic soda, etc.), industrial chemicals, intermediates
·Plastics and fibers: polyolefins, engineering plastics, styrene foam, polyurethane, Fiber intermediates, synthetic fibers
·Oil and natural gas: crude oil and natural gas exploration, production and sales, petroleum refining, refined oil sales
·Other businesses
Table 3 gives a brief overview of the sales, total assets, net profit and return on assets of BASF Group's divisions in the past two years.
As can be seen from Table 3, in 1996, except for the plastics and fiber departments, the sales of other departments of the BASF Group increased to varying degrees. From the perspective of net profit, health and nutritional products The three departments of , dyes and coatings, and oil and natural gas increased compared with 1995. Other businesses continued to lose money, while the profits of the two departments of chemicals, plastics and fibers declined to varying degrees. In 1996, the return on assets of the five core business divisions of the BASF Group was higher (excluding other businesses), but the average return on assets, including other businesses, was basically the same as in 1995. From the perspective of asset distribution, except for the decrease in chemicals, the total asset value of the other four core business areas has increased to varying degrees, and other business departments have also increased.
BASF Group has more than 140 production plants worldwide and production bases in 39 countries. The main production bases are Ludwigshafen and Wesseling in Germany. ), Antwerp in Belgium, Taragona in Spain, seal sands in the UK, Freeport and Geismar in the United States, Brazil Guaratingneta.
BASF Group’s dye production has a history of hundreds of years. Currently, the output and export volume of dyes and pigments rank first in the world. Petrochemical work is its key development direction and main business field, ranking first in the world. Very important position. BASF Group is the fifth largest ethylene manufacturer in Europe and the 14th largest in the world. In April 1993, a 600,000 tons/year cracking unit, a 250,000 tons/year ethylene oxide and a 160,000 tons/year acrylate unit were built in Antwerp, Belgium. In March 1994, BASF Group purchased two sets of 150,000 tons/year polypropylene plants from ICI Company, becoming the second largest polypropylene manufacturer in Europe and the fifth largest polypropylene manufacturer in the world.
BASF Group is also the world's largest acrylic acid manufacturer, with a production capacity of 600,000 tons/year in Europe and North America, which is twice as much as Rohmhas, which ranks second. BASF Group also occupies an important position in the world's polystyrene production, ranking second in the world in terms of capacity. The production capacity of BASF Group's other major petrochemical products in 1996 is shown in Table 4.
3. Operational Overview
BASF Group has continued to inherit its good tradition of focusing on research and development in recent years, gradually selling off its non-core and unprofitable businesses, and vigorously strengthening its operations through new and expanded production facilities and acquisition of related production plants. and expand core businesses. On the basis of stabilizing the domestic and European markets, BASF Group focuses on expanding the markets in North America and Asia (especially China), while strengthening operations in the South American market. BASF Group is in good operating condition, with sales, total assets, net profit and other indicators showing steady growth, while the asset-liability ratio has been declining year by year. Tables 5 and 6 respectively give a brief overview of BASF Group's assets and liabilities and financial profits and losses in the past two years. Table 7 gives its main operating indicators in the past six years.
IV. Business Strategy
The reason why BASF Group has achieved good business performance is that it has timely adjusted its business strategy in the face of changes in the world market, so that it can always maintain its technological and market leadership. due to the advantages. In recent years, BASF Group has undergone large-scale adjustments. To optimize the industrial structure and strengthen management, the strategic measures taken are:
1. On the basis of stabilizing the domestic and European markets, we will vigorously expand the North American and East Asian markets, while also taking into account the South American and African markets
Strengthen the three major production bases in Ludwigshafen, Germany, Schwarzer Pompeii and Antwerp, Belgium. New construction and expansion of production facilities to consolidate the European market.
In North America, we are expanding the capacity of production companies in Texas, Louisiana, Illinois, Alabama and other places in the United States; we are building a new styrene and styrene production plant in Altamira, Mexico. Butadiene separation plant and M styrene polymer and polystyrene In East Asia, BASF Group has or plans to establish nine joint ventures in Shanghai, Nanjing, Jilin, Shenyang and other places in China; in Ulsan, South Korea, The polytetrahydropyran production plant of BASE Korea and the ADS production plant of BASE are under construction.
BASF Group has established branches in regions or countries with its main markets or key market expansions to directly guide the development of local business. In 1996, the BASF Group established a health and nutritional products company headquartered in Denmark and BASF (China) Co., Ltd. headquartered in Beijing.
2. Consolidate core businesses, abandon non-core businesses, optimize the industrial structure, and gradually realize the strategic shift from operating diversification to focusing on core businesses. BASF Group further strengthens its core businesses through acquisitions. For example, it acquired Japan's Hokuriku Pharmaceutical Company and became the company's major shareholder, acquired France's GNR Pharmaceuticals and the Netherlands' Sudco to expand its business in the pharmaceutical field; acquired the herbicide business of Sandoz Company, increasing the number of protected products. types of crops, expanding its business scope in the field of plant protection; expanding its dye and pigment business by acquiring 49% of the equity of M. Dohinen Company and acquiring the fabric dye business of Zeneca Company in London, UK. Selling non-core businesses. In 1996, BASF sold its worldwide magnetic recording products business to South Korea's Koryo Corporation and closed its related operations in Indonesia; it withdrew its 40% stake in Comparex Information Systems and sold it to a South African company ;Sold oilfield chemicals business to Baker Specialty Chemicals. In early 1997, the gas production catalyst business was purchased to ICI. BASF Group has also reached an agreement with Saskatchewan Corporation to sell a 51% stake in the potash and potash company to the latter.
3. Joint ventures or alliances are established with competitors to enhance competitive advantages by complementing the main producer's technical advantages and main production equipment. BASF Group and the American Lynx Company jointly established a company headquartered in Heidelberg to conduct biotechnology and genetic engineering research. BASF Group also plans to combine its polyethylene business with Shell to establish a joint venture that will be responsible for the European polyethylene business of Rheinland Olefins, which BASF and Shell each hold 50% of, and the purchased Montel Polyolefins. The alliance with Shell will create a joint venture, BAsELL, which will produce propylene oxide and polypropylene at a new plant in Mondijk, the Netherlands. Joint venture between European unsaturated olefins business and Dutch company DSM.
BASF Group also plans to establish a joint venture with Hoechst to jointly operate the polypropylene business of both companies.
4. Focus on scientific research and development and maintain technological leadership
BASF Group’s research and development work has a history of more than 100 years. Scientific research is the fine tradition of the Group and the basis for its continuous development. BASF Group invests about 2 billion marks in research and development every year. In 1996, it reached a record of 2.286 billion marks, an increase of 9.5% over the previous year. BASF Group has 10,091 employees engaged in scientific research and development, including 2,393 with bachelor's degrees. In 1996, it applied for 1,107 patents, bringing its total number of patents to approximately 75,000.
5. Accelerate the integration process of enterprises in the same region and realize energy and raw material supply and infrastructure construction across the industry. Collaboration in logistics management, waste treatment and distribution to reduce costs and improve efficiency
Thanks to the integrated energy supply of BASF Group’s 50 production companies at its production site in Antwerp, Belgium, the region has No more expensive oil and gas fuels are used to generate industrial steam. Enterprises in Geismar and Freeport in the United States also emphasize the implementation of alliances.
5. Financial strength, investment trends and construction projects
1. Financial strength and investment trends
BASF Group has strong financial strength, and its capital expenditures have grown steadily in recent years. BASF Group’s capital expenditure on fixed assets is shown in Table 8. Tables 9 and 10 respectively give the BASF Group's expenditure department distribution from 1992 to 1996 and the regional distribution of capital expenditure in 1996.
Although BASF Group’s investment in fixed assets has not remained at around 4 billion marks as it was between 1989 and 1993, it has been growing steadily since 1994, and it plans to invest more than 3.8 billion marks in 1997. .
Judging from the sectoral distribution of BASF Group’s capital expenditures, the field of health care and nutritional products has been showing an increasing trend, and there are signs of accelerated development in recent years. BASF Group's capital expenditures in chemicals, plastics and fibers increased investment again in 1996 after four years of decline. As the traditional core business of BASF Group, the dyes and coatings field has been developing relatively steadily, which can also be seen in BASF Group’s capital expenditures in this field. BASF Group's capital expenditures in the oil and gas sector are volatile. BASF Group's capital expenditures in other business areas have grown steadily in the past three years, but are significantly lower than before 1993. Generally speaking, BASF Group’s capital expenditures are invested around its development strategy. The three fields of dyes and coatings, chemicals, plastics and fibers have developed steadily as its traditional areas of strength. Health care and nutritional products have been the core areas of BASF Group. The emerging core fields are developing well. The oil and natural gas field, as a source of raw materials, has also developed steadily in the past three years.
Judging from the geographical distribution of BASF Group’s capital expenditures, the European market is its solid focus, of which capital expenditures in Germany account for nearly half. The North American market is the focus of BASF Group's expansion. BASF Group's capital expenditures in Asia-Pacific, Africa and South America account for the smallest proportion, and its investment focus in the Asia-Pacific region is China, followed by South Korea.
2. Projects under construction in 1996-1997
BASF Group's investment in fixed assets in 1996 was 3.639 billion marks, an increase of 20.3% over the previous year. Among them, 297 million marks were used to acquire the herbicide business, and 1.750 billion marks were used for the construction of domestic production facilities in Germany. Production facilities completed or under construction are:
Ludwigshafen: Capacity expansion for isophorone diamine, alkylaminopropylamine, optically active intermediates and specialty ethylene monomers, under one roof Methanol is produced in an ammonia production plant and triphenylphosphorus is instantly regenerated from triphenyl oxide.
Schwarzheide: Synthesis plant for styrene polymers, production of butadiene and terephthalic acid
Antwerp: Construction of production plants for ethanolamine, nitrobenzene, steam Expansion of cracking furnace and styrene capacity Enka, North Carolina, USA: Construction of a production facility for Basifil brand fibers
Altamira, Mexico: Construction of a butadiene and styrene dispersion production facility< /p>
Shanghai, China: Construction of a fabric dye, auxiliary and pigment production plant at Shanghai BASF Dyestuff Chemical Co., Ltd. Other expansion projects include:
Ludwigshafen: Expansion of the steam cracking furnace to Production of butanediol, neopentyl alcohol and oxychloride derivatives of carbon
Wesseling: Expansion of polyethylene, polypropylene and cracking furnaces at Rhein Olefins
Antwerp: Construction of formaldehyde production unit
Freeport, Texas, USA: Construction of new syngas production unit, carbon-based-C4 products, phenolates, super phthalamine, caprolactamide expansion
Geisma, Louisiana, USA: Expansion of specialty ammonia compounds, butyrolactone and N-methylpyrrolidone
Joliet, Illinois, USA: High-impact polypropylene capabilities Expansion
Ultraform Company, Mobile, Alabama, USA: Doubling polyacetal production capacity
Altamira, Mexico: Styrene polymer and polystyrene Production equipment construction
Ulsan, South Korea: BASF Korea's polytetrahydrofuran and Hyosung-BASF's ABS resin production equipment
China: Jilin Chemical Industry Co., Ltd.'s Ding The construction of octanol production equipment and the nylon carpet fiber plant with China Sega Group Co., Ltd. in Shanghai
6. Scientific research and leading petrochemical technology
BASF Group attaches great importance to research and development (R&D ), investing approximately 2 billion marks every year, and in 1996 it reached a record high of 2.286 billion marks. In addition, BASF Group has also allocated 270 million marks for the construction of new laboratories, pilot plants and equipment. The investment and distribution of BASF Group's research and development in 1995 and 1996 are shown in Table 11. In 1996, there were 10,091 staff in various laboratories of BASF Group, of which 2,393 had university degrees. In 1996, BASF Group added 1,107 new patents, and by the end of the year, it owned 75,000 patents worldwide.
The research work of the BASF Group is characterized by the fact that, in addition to the strong strength of the central research department at the Ludwigshafen headquarters, multiple local development departments have been set up around the world to conduct research work locally. The central research facility located in Ludwigshafen has 4 long-established laboratories. The research scope is: chemicals, plastics, pharmaceuticals and plant protection products, as well as dyes and auxiliaries and specialty chemicals. In addition, a number of engineering development departments are established to provide support for overall research work. Research departments around the world are under the jurisdiction of various business departments and subsidiaries, and are mainly engaged in research related to production and marketing.
BASF Group’s world-leading process technologies in petrochemicals include:
1. Butadiene production technology by N-methylpyrrolidone extraction method
This technology first achieved industrial production in 1968. So far, there are 28 sets of devices using this technology to produce butadiene in the world, covering Germany, Britain, the United States, Japan, France, Italy, China, India, South Korea, Brazil, Romania, Saudi Arabia, Iran, and Austria. It has a total production capacity of 2.522 million tons per year and is the most widely used butadiene extraction technology in the world.
2． Novolen vapor-phase clean polypropylene production technology
This technology was industrialized in 1977. The capacity of the world's polypropylene production equipment using this technology has reached 1.7 million tons/year, which is second only to Haymont's environmental management method. The second most widely used polypropylene production technology.
3. MDEA method for acid gas removal technology
This technology first achieved industrial production in 1971. So far, there are 63 sets of acid gas removal devices using this technology in the world, 5 have been built, 14 are under design, and 82 have been installed in Germany, the United States, Canada, the Netherlands, the United Kingdom, France, 27 countries including Russia, Japan, South Korea, and Malaysia.
4. Improved Rapa process for producing 1,4-butanediol
The Rapa process, which uses formaldehyde and acetylene as raw materials to produce 1,4-butanediol, was first industrialized by BASF in 1975. BASF has improved it into the improved Rapa method (that is, the Rapa normal pressure method). This method uses a suspended bed process, and the catalyst and product are separated in the reactor. It is currently the most important method in the world 1,4. One of the butanediol production processes.
5. Process technology for producing phenol phthalate by fixed bed oxidation method
This method began to be industrialized in 1976. It uses o-xylene as raw material and adopts efficient vanadium-titanium series surface-coated annular catalyst and tube-type fixed Bed reactor is currently one of the most important phthalic acid production processes in the world. At present, the device capacity using this method in the world accounts for 32% of the world's total production capacity.
6. Methyl formate method for producing formic acid
This technology was industrialized in the early 1980s. BASF used this method to establish a 100,000-ton/year formic acid production unit. In this method, CO and methanol are used as raw materials to react to generate methyl formate, and the generated methyl formate is then hydrolyzed in the presence of an extractant to obtain formic acid.
7. Foamed polypropylene main production technology
This is a new process developed by BASF. The products can be used in automobiles and insulation materials.
8. Main production technology of expandable polystyrene
BASF obtained the patent right for the production technology of expandable polystyrene as early as 1952. The group currently produces expandable polystyrene at 11 bases on four continents, and has formed a series of expandable polystyrene products with the trade name styropor consisting of more than 30 different varieties. Its output ranks first in Europe. Bit.
9. Prepare various hydrorefining and hydrotreating catalyst preparation technologies
Basf has gradually formed a long-term petrochemical production practice based on hydrogenation of olefins and aromatics, hydrodesulfurization, hydrodenitrification, and hydrodesulfurization. We have various hydrorefining and hydrotreating catalyst series products characterized by the hydrorefining of metals, lubricating oils and waxes and have their preparation technology. These catalysts can be used for the refining and processing of various raw materials and are widely used in the petrochemical industry.
10． Main production technology of water-soluble paint
BASF has used this technology developed by it to build a 10,000-ton production facility in Schwarzer-Penlang, Germany in 1993. Its products have low pollution and can be used as automotive polishing paint. .
11. The main production technologies are toluene diisocyanate (TD1) and diphenylmethane diisocyanate (MDL).
7. Relations with China
BASF Group has a long history of business dealings with China and has an extremely close relationship. As far back as 1886, the Baden Aniline Alkali Factory had exported magenta to China. BASF China Co., Ltd. was established in Hong Kong in 1982, with four marketing departments and one functional department. The four marketing departments are:
·Dyes, Pigments and Specialty Chemicals Department
·Chemical Industry Department
·Agriculture and Fine Chemicals Department
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·Plastics Department
In 1986, BASF Group's liaison work in China was merged into the newly established Beijing and Shanghai representative offices. In 1990, BASF Group opened a representative office in Guangzhou to promote business development in the Pearl River Delta region. Currently, BASF Group has reached 5 joint ventures and 12 technology transfer agreements with China.
BASF Group’s first joint venture project in China is Shanghai Gaoqiao-BASF Latex Company. The company was established in 1988 as a joint venture between BASF Group and Shanghai Gaoqiao Petrochemical Company, with each party holding half of the shares. The joint venture company has an annual output of 6,000 tons of styrene-butadiene latex. Due to the strong market demand for latex, the company has added a 20,000-ton/year factory, which is now in production.
In April 1989, BASF Group signed a joint venture agreement with China Petrochemical Corporation Jinling Petrochemical Company. This was BASF Group’s second joint venture plan in China. The joint venture company was named Jinling BASF Resin Company. , both parties hold 50/50 shares. In 1993, Gaoqiao Petrochemical Company and BASF Group formed a 50-50 joint venture to establish Shanghai Gaoqiao BASF Dispersions Company, with the factory built in Pudong. In 1994, Shanghai BASF Dyestuff Chemical Co., Ltd. was established, with BASF Group holding 75% of the shares. It mainly produces pigments and textile dyes.
Yangzi BASF Polystyrene Series Products Co., Ltd. was established in 1994 as a joint venture between BASF Group and Yangyu Petrochemical Company to produce ethylbenzene, styrene and polystyrene. In addition, the company will plan to build a factory to produce expandable polystyrene. In 1995, BASF Group and Northeast Pharmaceutical General Factory established Dongyao-BASF (Shenyang) Vitamin Co., Ltd., with BASF Group holding 70% of the shares. In 1995, BASF Group also established a joint venture with Jilin Chemical Industry Company, BASF-Jihua Neopentyl Alcohol Co., Ltd., with an annual output of 15,000 tons of neopentyl alcohol, in which BASF Group holds 60% of the shares. In the same year, BASF Group's Lacke and Fartien companies and Shanghai Paint Co., Ltd. jointly established BASF Shanghai Paint Co., Ltd. to produce various coatings, with BASF Group holding 60% of the shares. BASF AG, the North American branch of BASF Group, also owns 5% of Shanghai Carpet Backing Materials Co., Ltd. In December 1996, BASF Group signed an agreement with China Sijia Group Company to produce carpet fibers using nylon-6. To this end, the two parties jointly established BASF Huayuan Nylon Co., Ltd., located in Qingpu County, Shanghai, with BASF Group holding 70% of the shares. The device with a capacity of 7,000 tons/year will be put into operation at the end of 1998, and the capacity is planned to be expanded to 19,000 tons/year. BASF Group's largest investment in China is to establish a joint venture with Yangzi Petrochemical Company to build a comprehensive petrochemical plant based on a 600,000 tons/year naphtha cracking ethylene unit, including aromatics and butadiene extraction units, and syngas facilities. gas separation plant and a power plant. The total investment exceeds 6 billion marks and is expected to be put into production in 2003. In addition, BASF Group plans to establish a joint venture with Shanghai Gaoqiao Petrochemical Company and Shanghai Huayi Group Company to establish an MDI/TDI production plant in Shanghai Caojing Industrial Park, which is scheduled to be put into operation in 2001. So far, BASF Group is the largest foreign investor in China's chemical industry, with a total investment of more than 1 billion marks.