On January 10, 2012, the Inauguration Ceremony of the second phase of Integrated Petrochemical Site (IPS II) of BASF-YPC Company Limited (BYC) was held, attended by Mr. Li Quanlin, Standing Vice Director of the Standing Committee of Jiangsu Provincial People's Congress, Dr. Martin Brudermueller, Vice Chairman of the Executive Board of Directors of BASF SE, responsible for Asia Pacific, Dr. Dai Houliang, Senior Vice President of Sinopec Corp., together with customer representatives, BYC management team and other distinguished guests.

The investment of IPS II amounted to 1.4 billion, including expansions of existing plants and construction of new facilities.

The existing steam cracker has been expanded to a total of 740,000 metric tons per year of ethylene, along with the expansion of the existing ethylene oxide (EO) plant to 330,000 metric tons per year, and the construction of a new EO purification unit with a capacity of 150,000 metric tons per year. New plants in the expanded EO derivatives value chain include a new non-ionic surfactants plant with a capacity of 60,000 metric tons per year; a new amines complex with a capacity of 130,000 metric tons per year for the production of ethanolamines, ethyleneamines, and dimethylethanolamine; and the construction of a new DMA3 plant with a capacity of 25,000 metric tons per year. BYC now has an integrated C4 complex comprised of a new butadiene extraction plant with a capacity of 130,000 metric tons per year; a new isobutene extraction plant with a capacity of 60,000 metric tons per year; a new plant for highly reactive polyisobutene with a capacity of 50,000 metric tons per year; and a new 2-propyl-heptanol plant with a capacity of 80,000 metric tons per year. The existing oxo-C4 plant has now been expanded to 305,000 metric tons per year.

“Through this successful partnership, we are able to bring vital chemical products and solutions to China that will directly support local industries as they strive to meet the needs of a rapidly developing population,” said Dr. Martin Brudermueller, “At the same time we are also investing in advanced production technologies that themselves use less water, save energy, and reduce emissions. BYC is a flagship example of our Verbund system, which achieves extremely efficient production and safety by clustering plants and re-using by-products.”

“With the smooth completion of the second phase of Nanjing investment, BYC has once again set an excellent example of Sinopec’s international partnerships and paved ways for further prosperous developments between BASF and Sinopec. We are confident BYC will continue expanding its product portfolio and providing crucial chemicals to the growing demands in China while contributing to a sustainable future,” said Dr. Dai Houliang.

With the start-up of IPS II, BYC brings to the Chinese market more crucial chemicals that will support the sustainable development of the local industries. BASF and Sinopec signed a Memorandum of Understanding in December 2010 to jointly explore the further expansion of BYC, with new investments under consideration collectively totaling approximately USD 1 billion.