-   Investments in a state-of-the-art olefin platform to facilitate sustainable growth

-   New steam cracker complex will be backwards integrated into local refinery network and strengthen competitiveness

-   New asset will use 100% renewable power and state-of-the-art production technologies

Nanjing, China - August 30, 2024 - Sinopec Yangzi Petrochemical Company Ltd. (YPC) and BASF-YPC Company Ltd. (BYC) will invest in a new state-of-the-art steam cracker as Olefin platform, as part of the Light Hydrocarbon Comprehensive Utilization Project. The new platform will be operated by Nanjing YPC BYC Olefin Company Ltd. (YBOC), a 50-50 joint venture between YPC and BYC, located in Nanjing. It will strengthen the olefin value chains of both shareholders with a strong backwards integration into the local refinery network.

The project is comprised of a one-million-ton steam cracker unit, one pyrolysis gasoline unit, one aromatics extraction unit and associated utilities. The new steam cracker will exclusively supply downstream value chains of both shareholders, providing feedstock to the industry for the existing and future demand. The project was first announced in October 2018.

By adopting state-of-the-art carbon reduction technology and utilizing 100% renewable power, the platform will significantly contribute to sustainable growth for the entire value chains. It will be a benchmark project in Jiangsu province and a strong testimony towards China's dual carbon targets. This investment represents a significant step towards achieving sustainable growth in the region.

Gu Yuefeng, Chairman of YPC and BYC said, "The project adopts the latest process technology developed by Sinopec, with domestically leading indicators and more reliable safety and stability of the plant. Meanwhile, we actively promote the application of new information technology, strive to be at the forefront of the petrochemical industry in terms of advanced and domestic technologies and equipment, and make every effort to create a benchmark for modern petrochemical industry.”

"We are excited about the potential of this project to enhance our production capabilities and drive further growth for both BYC and YPC. By combining our strengths and competencies, we will strengthen our businesses, reach our sustainability ambitions and serve the growing demand of our customers.” said Dr. Jeffrey Lou, President and Chairman of Greater China, BASF and Vice Chairman of BYC. “With this project, we also expand the strategic partnership between the shareholders that has been established over years with mutual trust and shared vision."

About SINOPEC / YPC

SINOPEC is one of the largest integrated energy and chemical companies with upstream, midstream and downstream operations in China. Its principal operations include: the exploration and production, pipeline transportation and sales of petroleum and natural gas; the sales, storage and transportation of petroleum products, petrochemical products, synthetic fiber, fertilizer and other chemical products; and the research, development and application of technologies and information. With a vision of “to build a world-leading clean energy and chemical corporation”, SINOPEC vigorously implements its world-leading development strategy and expedite formation of its development pattern of “One Foundation of energy and resources, Two Wings of clean fuels and advanced chemicals, and Three Growth Engines in new energy, new materials and new economy”. More information on SINOPEC is available at www.sinopec.com

YPC is an important refining and chemical integrated company of SINOPEC. Located in Nanjing, Jiangsu, China, it implements shareholder’s management over BYC on behalf of SINOPEC. More information on YPC is available on the Internet at www.ypc.sinopec.com

About BASF-YPC Company Limited

BASF-YPC Company Limited (BYC) is a 50-50 joint venture between BASF and Sinopec, founded in 2000, with a total investment of approximately RMB 39 billion. The integrated petrochemical site produces about three million tons of high-quality chemicals and polymers for the Chinese market annually. The products serve the rapid-growing demand in multiple industries, including agriculture, construction, electronics, pharmaceutical, hygiene, automotive and chemical manufacturing. All BYC plants employ advanced technology and BASF "Verbund" concept to save on raw materials and energy, reduce emissions, cut logistics costs and exploit synergies. BYC posted sales of approximately RMB 19.4 billion in 2023 and employed 2,173 people as of the end of the year. Further information is available on www.basf-ypc.com.cn

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