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09-29-2006

BASF / Sinopec: Feasibility Study for the Expansion of Nanjing Site

BASF and Sinopec signed an agreement on the preparation of a technical and commercial feasibility study for the planned expansion of their joint site in Nanjing/China. The agreement advances BASF’s and Sinopec’s earlier commitment to invest well above 500 million USD expanding the production facilities at their 50:50 joint venture in Nanjing, BASF-YPC Co. Ltd. The companies plan to expand the capacity of the steam cracker and invest in additional downstream plants to further strengthen synergies at the site. The new activities are expected to come on stream in 2009.

Both companies also agreed to integrate their second joint operation Yangzi-BASF Styrenics in Nanjing into BASF-YPC Co. Ltd. to increase efficiency and make full use of existing synergies.

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