•   BASF and SINOPEC submit feasibility study for $900 million expansion of Nanjing site
•   Significant step forward for strategic downstream products expansion
•   New activities to come on stream stepwise starting in 2008, cracker expansion planned for 2009/2010

Beijing, China – March 17, 200 – China Petroleum & Chemical Corporation (Sinopec Corp.) and BASF today submitted the technical and commercial feasibility study for the approval of the planned $900 million expansion of their joint chemical Verbund site in Nanjing to the Chinese government. The site is operated by the joint venture BASF-YPC Co. Ltd. (BYC). 

The completion of the study was formalized by Wang Tianpu, President of Sinopec Corp. and Dr. Martin Brudermüller, member of the Board of Executive Directors of BASF SE, at a signing ceremony in Beijing today. 

The main pillars of the expansion are:

1.    Expansion of the steam cracker from 600,000 to around 750,000 metric tons of ethylene per year.

2.    Expansion of the ethylene oxide (EO) plant and development of EO derivatives to strengthen the ethylene value chain by producing non-ionic surfactants for detergents and the solvent butylglycol ether.

3.    Development of the C4 value chain including C4 specialties: Butadiene and isobutene as chemical raw materials, 2-propylheptanol for a new-generation plasticizer and polyisobutene derivatives as fuel and lubricant additives.

4.    Extension of the acrylics value chain to produce superabsorbent polymers (SAP) for hygiene and industrial applications.

5.    Expansion of the existing oxo-alcohol and propionic acid plants.  

The new activities are expected to come on stream stepwise starting already this year: the cracker expansion is scheduled for 2009/2010. 

"The completion of this feasibility study report marks an important step in the cooperation between Sinopec and BASF at BYC. Sinopec will fully support the growth of BYC, which is expected to make significant contribution to meet domestic market demand." said President Wang Tianpu. 

"The expansion of BYC further strengthens our close partnership with Sinopec and makes BYC even more powerful.", said Dr. Brudermüller. "The expansion is another significant demonstration of BASF's long-term commitment to China's chemical market."

Both companies also agreed to integrate another of their joint operation Yangzi-BASF Styrenics (YBS) in Nanjing into BYC to increase efficiency and make full use of existing synergies.