In early 2026, BASF celebrated two major milestones in China: securing a multi-million-dollar coatings order with Dongfeng Liuzhou Motor and simultaneously commissioning the core facility at its Zhanjiang integrated site, marking a new phase of capacity ramp-up for the world's third-largest integrated production base.

Zhanjiang Core Facility Commissioned, Accelerating Capacity Ramp-Up at World's Third-Largest Base
On January 7, BASF announced the commissioning of the core ethylene cracker at its Zhanjiang site, with an annual capacity of 1 million tons. This facility will supply ethylene, propylene, and other raw materials to downstream units, laying the foundation for the site's full-scale operation. With a total investment of €8.7 billion, the Zhanjiang site represents BASF's largest single investment and will become its third-largest integrated production base globally, integrating production, logistics, and material flow systems. Spanning 4 square kilometers, the site will employ 2,000 staff, with a management team predominantly composed of local Chinese talent, reflecting its commitment to localized operations.

By the end of 2025, the Zhanjiang site had already begun its capacity ramp-up, with the polyethylene and 2-ethylhexyl acrylate units commissioned and the citral unit achieving mechanical completion.

Partnership with Dongfeng Liuzhou Motor Secures Annual Coatings Order Worth RMB 35.13 Million
On January 4, it was announced that Dongfeng Liuzhou Motor had adopted BASF coatings, represented by Liuzhou Defu (a first-tier authorized distributor of BASF). The estimated procurement value for 2026 is RMB 35.13 million (excluding tax), with a one-year cooperation term. BASF's coatings business in China is centered around BASF Shanghai Coatings, established as a joint venture in 1995. With two production bases in Shanghai, the company primarily supplies automotive-related coatings to customers such as BYD and BMW.

In 2025, BASF's coatings business in China expanded successfully, securing contracts with multiple automakers and expanding production capacity at its Shanghai plant to enhance supply capabilities. Financially, BASF Shanghai Coatings maintained stable revenue growth from 2020 to 2024 (with a slight decline in 2024), while net profit reached a record high in 2024. In the first half of 2025, revenue reached RMB 2.298 billion (a 3.1% year-on-year increase), with net profit at RMB 188 million (a 17.38% year-on-year decrease).

In 2025, BASF completed a strategic adjustment of its coatings business, retaining a 40% stake after divesting related operations and generating €5.8 billion in pre-tax cash proceeds.