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BASF DIVESTS CHINA VENTURES

February 13, 2024
M&A

BASF divests China ventures. BASF plans to sell its shares in two Korla-based joint ventures, part of its strategic reevaluation of the 1,4-butanediol (BDO) sector. BDO, a key precursor to polybutylene terephthalate (PBT), is facing a challenging market and environmental scrutiny.

The company aims to shift towards eco-friendlier BDO production, as the Korla sites’ coal-based processes contribute to a high carbon footprint. Despite no evidence of human rights violations in the ventures, allegations against a partner have hastened BASF’s exit.

BASF’s commitment to China remains strong, with the region being a focal point for chemical production growth. Greater China’s significant role in BASF’s strategy highlights its importance in driving the global chemical industry’s expansion through 2030.