(Yicai Global) Oct. 31 -- China's state-owned energy giant Sinopec has agreed on a deal with German chemical major to build an additional steam cracker at the pair's joint venture production base in Nanjing, capital of Jiangsu province in the east of the country.
The two parties have signed a memorandum of understanding for the plan, which will boost existing output, the Beijing-based firm said in a statement. The pair will now embark on a pre-feasibility study for the project.
The BASF-Yangtze Petrochemical equal-shareholding JV set up the USD5.2 billion plant in 2005. The base produces some three million tons of various chemicals and polymers annually, serving multiple industries including agriculture, construction, electronics, pharmaceutical, hygiene, automotive and chemical manufacturing.
The pair will also jointly explore new business opportunities in China's fast-growing battery materials market. BASF set up a business unit for battery materials back in 2012 with a focus on high-energy cathode materials, including nickel-cobalt-manganese oxides and nickel-cobalt-aluminum oxides.
BASF has also carried research in next-generation battery material technology, including the development of lithium-sulfur with Sion Power, and its long-term goal is to become a leading supplier of functional materials and components for global batteries and battery packs.
Editor: William Clegg