BASF in Greater China
Report 2024
Cover photo:
At BASF, innovation is the bedrock of our success. In the new microbiological laboratory, researchers are comparing bacterial growth on agar gel and evaluating the performance of the antibacterial agent under testing.
On this page:
BASF in Greater China Report 2024 2
BASF, together with its partners, launched the "Pioneer Alliance for Zero-Carbon Recyclable Paper Cups," aiming to explore closed-loop raw material and waste management of paper cups with water-based barrier coatings that employ BASF's Joncryl®High Performance Barrier (HPB) dispersions.
Index
Index
About this Report 3
Welcome Letter from the President 4
BASF Group 2024 at a Glance 6
BASF Group 8
BASF in Asia Pacific 19
BASF in Greater China 20
Innovation 22
Business Development 24
Environmental Protection, Health and Safety 32
Procurement 40
Employees and Society 42
Further Information 51
About this Report
The "BASF in Greater China" Report is published annually as a concise document about the performance of our activities across the three dimensions of sustainability - economy, environment and society - in Greater China. The reporting period for this publication is the financial year 2024. This report also carries an overview of the BASF Group along with its financial performance, prepared in accordance with the requirements of the International Financial Reporting Standards (IFRS), and, where applicable, the German Commercial Code as well as the German Accounting Standards (GAS). We voluntarily applied the first set of the European Sustainability Reporting Standards (ESRS). The emissions, waste, energy and water use of consolidated joint operations are included pro rata, based on our stake. The employee numbers refer to employees within the BASF Group scope of consolidation as of December 31, 2024.
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BASF in Greater China Report 2024 Index 3
Welcome Letter from the President
At BASF in Greater China, we drive transformation through innovation.
Despite the slow global economic recovery and complex geopolitical landscape in 2024, we remain committed to the Chinese market. Due to fluctuations in price and exchange rates, our net sales in Greater China declined slightly to €8.6 billion in 2024. However, the sales volume in Greater China witnessed a 2% growth, demonstrating our resilience and steady recovery amid industry challenges.
In 2024, we set a new direction with the launch of the "Winning Ways" strategy. Our ambition is to be the preferred chemical company to enable our customers' green transformation. In Greater China, we focus on four strategic levers as we steadily move towards this goal.
Focus: rooted in China, expanding in high-growth markets
China is the world's largest chemical market and a key growth driver for the global chemical industry. In 2024, we continued to strengthen our footprint in China, focusing on high-growth market.
The BASF Zhanjiang Verbund site, with a total investment of around €10 billion, is now focusing on building its core, which is expected to be operational by the end of 2025. Upon completion, the Verbund site will offer a diversified product portfolio tailored to the needs of the Chinese market. The low-carbon products made in Zhanjiang will support downstream customers to meet their carbon reduction goals.
At the Nanjing site, the expansion of the advanced additives plant is under construction. The plant is designed to achieve high environmental standards; its innovative production process will set a new benchmark for low-carbon production. At the Daya Bay site, the second polymer dispersions production line started operation in 2024, enhancing BASF's ability to quickly respond to the needs of industries such as coatings, construction, packaging, and adhesives.
The new strategy also redefined our portfolio management approach. BASF now differentiates between core and standalone businesses. We focus on strengthening our core businesses and growing profitably, while unlocking the full potential of the standalone businesses.
Accelerate: staying agile and innovative
In recent years, the focus of China's manufacturing industries has evolved from traditional to high-end markets. This transformation has reshaped the demand for upstream chemical products, making more stringent requirements on our abilities to respond promptly and innovate.
To keep pace with our Chinese customers and partners, we have optimized our internal processes and adopted a streamlined, differentiated steering approach to drive business growth. We also embrace emerging technologies, leveraging artificial intelligence (AI) to boost productivity, improve profitability, and accelerate innovation.
We keep advancing our research and development (R&D) capabilities in China. In 2024, the Zhanjiang Verbund site inaugurated its Verbund Technology Center (VTC), an innovation-driven growth engine to accelerate Verbund-related
technology transformation and empower made-in-Zhanjiang products. We also opened a new Asia Pacific Application and Technical Center of the Coatings division in Jiangmen, Guangdong last year, making a new focal point on the global technology network for BASF's automotive refinish coatings business.
Transform: enabling our customers' green transformation
We are committed to our climate change goals and strive to achieve net-zero CO2emissions by 2050. With that, we continue to expand our use of renewable energy. In 2024, we commenced the construction of the first Sino-German offshore wind farm, a joint investment by BASF and Mingyang. Our Rudong site reduced CO2emissions to zero last year. Several of our production sites in Greater China now use 100% renewable electricity.
We also empowered our customers on their transformation journey with our sustainable and innovative solutions. Last year, our Shanghai Polyamide 6 (PA6) plant received ISCC PLUS certification; we explored the use of biomethane in collaboration with Shenergy. Our cross-industry initiatives, such as the "Pioneer Alliance for Zero-Carbon Recyclable Paper Cups", 100% recyclable TPU shoes, and "Design-for-Recycling" steering wheels, speak for the potential of circular economy in China.
Win: going far with the "Winning" team
Our employees are the cornerstone of BASF's success in Greater China. I am honored to announce that BASF has been awarded China's Top Employer for the 15th consecutive year-a prestigious accolade in recognition of our team's accountability, speed, and improvement mindset. With our Winning Culture and collective efforts from our colleagues in Greater China, I firmly believe, we will welcome many more occasions for celebration.
2025 marks the 140th anniversary of BASF in Greater China. Over this journey spanning across a century, we have set our root firmly in China by offering innovative products and excellent solutions. With our employees, customers, and partners, we have supported diverse industries and contributed to societal progress. Amid challenges, we remain committed to our purpose - we create chemistry for a sustainable future - and will continue to evolve with a forward-looking spirit.
I look forward to working with all stakeholders to "Go far on our Winning Ways".
Dr. Jeffrey Lou
President and Chairman Greater China, BASF
BASF Group 2024 at a Glance
BASF Group
2024 at a glance
Our integrated reporting combines financial and sustainability reporting. We inform you how we are developing as a company and how we create value for our stakeholders.
S65.3 €7.9 5.1%
billion
Sales
2023: €68.9 billion
billion
Cash flows from operating activities
2023: €8.1 billion
billion
EBITDA before special items
2023: €7.7 billion
billion Free cash flow 2023: €2.7 billion
ROCE
2023: 4.5%
billion
Capital expenditures
2023: €5.2 billion
EBITDA before special items by segmenta and Other
Million C
1,342
1,167
965
1,161
1,805
1,650
Core
businesses
AQ?OLliF?I SOltONS
565
814
1,375
1,520
1,938
2,270
Standalone businesses
-578
-466
2024
2023
a Since January 1, 2025, the chemical and refining catalysts business has been reported as part of the Performance Chemicals division in the Industrial Solutions segment. It was previously part of the Catalysts division in the Surface Technologies segment. The reclassification has not been taken into account in this report unless otherwise indicated.
6
BBAASSFF iinn GGrreeaatteerr CChhiinnaa RReeppoorrtt 22002244 BASF Group 2024 at a Glance 6
Sales and employees by region
By location of company; employees as of December 31, 2024
North America
8.2 5,969
Sales (billion €) Employees
South America, Africa, Middle East
50 iJ56
Sales (billion €) Employees
Greenhouse gas emissionsa
Million metric tons of CO, equivalents
2024
2023
2018
1990
17.0b
21.9
Europe
26.2 66,726
Sales (billion €) Employees
Asia Pacific
159 2L9A
Sales (billion €) Employees
40.1
a Scope 1 and Scope 2 (excluding the sale of energy to third parties)
b The figure for 2023 has been adjusted to reflect updated data.
S2.1 111,822 S11.2
billion
Research and development expenses 2023: €2.1 billion
Employees at year-end 2023: 111,991
billion Personnel expenses
2023: €11.0 billion
BASF in Greater China Report 2024 BASF Group 2024 at a Glance 7
BASF Group
At BASF, we create chemistry for a sustainable future. Our ambition is to be the preferred chemical company to enable our customers' green transformation. We combine economic success with environmental protection and societal responsibility. Our portfolio is structured into core businesses and standalone businesses.
Sites and Verbund
BASF production sites
Nanjing
Geismar
Freeport
South Korea
Shanghai
Zhanjiang
Kuantan
Antwerp
The map shows the BASF Group's production sites according to the scope of consolidation for this report. Sites not shown on the map include pure research and development sites, office and warehouse locations as well as sites of companies outside the scope of consolidation.
Ludwigshafen
Verbund sites / planned Verbund site
Production sites
BASF had 111,822 employees in 92 countries in the 2024 business year and operated 235 production sites worldwide. These include six Verbund sites, which are located in Ludwigshafen, Germany; Antwerp, Belgium; Freeport, Texas; Geismar, Louisiana; Kuantan, Malaysia; and Nanjing, China. A seventh Verbund site is currently under construction in Zhanjiang, China. We aim to start up the new Chinese Verbund site in the fourth quarter of 2025. The Verbund concept is one of our key strengths, enabling us to intelligently link and steer our plants and permitting resource-efficient, CO2-optimized and reliably managed production.
Organization of the BASF Group
In the 2024 business year, the BASF Group consisted of 11 operating divisions, grouped into the following six segments:
Chemicals: Petrochemicals, Intermediates
Materials: Performance Materials, Monomers
Industrial Solutions: Dispersions & Resins, Performance Chemicals
Nutrition & Care: Care Chemicals, Nutrition & Health
Surface Technologies: Catalysts, Coatings
Agricultural Solutions: Agricultural Solutions
BASF Group segments in 2024 Core businesses
Chemicals
The Chemicals segment supplies both external customers and BASF's other segments with basic chemicals and intermediates.
Materials
In the Materials segment, we produce advanced plastics and their precursors for processing industries.
Industrial Solutions
The Industrial Solutions segment develops and markets ingredients and additives for industrial applications.
Nutrition & Care
The Nutrition & Care segment produces ingredients for consumer applications such as human nutrition and cleaning agents.
Standalone businesses
Surface Technologies Agricultural Solution
The Surface Technologies segment produces chemical solutions for surfaces such as automotive OEM coatings, battery materials and catalysts.
The Agricultural Solutions segment is an integrated solutions provider of seeds, crop protection products and digital solutions for the agricultural sector.
BASF implemented a Differentiated Steering concept at the start of the 2024 business year. As part of this, two new, most important financial key performance indicators for steering the BASF Group in the short and medium term were established as of January 1, 2024: income from operations before depreciation, amortization and special items (EBITDA before special items) and free cash flow. EBITDA before special items and segment cash flow were introduced as the most important financial key performance indicators for the segments. This enables us to provide a higher level of transparency around the results of our segments. Scope 1 and 2 CO2emissions remained the most important sustainability-related key performance indicator at Group level.
In addition, we restructured BASF's portfolio as part of our strategy, which was announced in September 2024. We now differentiate between core businesses and standalone businesses, which operate independently. Our core businesses comprise the Chemicals, Materials, Industrial Solutions and Nutrition & Care segments. They benefit from their deep integration in our value chains and the Production Verbund. Our standalone businesses are clustered in the Surface Technologies and Agricultural Solutions segments. These serve distinct industries and compete with peers who focus exclusively on individual industries ("pure players"). Our standalone businesses now have greater flexibility and operational freedom, enabling them to react more swiftly and appropriately to specific market requirements.
The operating divisions, the service units, research and development and the Corporate Center are the cornerstones of the BASF organization. Regional structures are being dissolved to simplify and streamline the organization. This new setup lays the foundation for more customer proximity, value creation, competitiveness and profitable growth.
The operating divisions bear strategic and operational responsibility and are organized according to sectors or products. Five service units provide competitive services for the BASF Group:
Global Engineering Services
Global Digital Services
Global Procurement
European Site & Verbund Management
Global Business Services (finance and controlling, human resources, safety, intellectual property, communications, procurement, supply chain, in-house consulting services and real estate)
The Global Business Services unit was revamped, effective November 1, 2024. Clearer roles and structures were established in order to increase flexibility and at the same time ensure conscious cost management. The unit has been decentralized and is increasingly focusing on four service areas: regional and global services, global project consulting, and portfolio and technology management. The latter drives long-term objectives within Global Business Services and pursues global projects.
Our dedicated research and development units are integrated into the divisions, while activities with broad relevance for our businesses are bundled in a research division - Group Research. This division is globally positioned with research centers in Asia Pacific, Europe and North America. With this setup, we are focusing our research activities on our customers and their industry-specific needs.
The Corporate Center supports the Board of Executive Directors in steering the company as a whole. This includes central tasks in the following areas: strategy; finance and controlling; legal, compliance and insurance; tax; environmental protection, health, safety and quality; human resources; communications; investor relations; corporate audit and, until the end of 2024, also the Net Zero Accelerator unit.
Organization of the BASF Group as of January 1, 2025
As part of the implementation of the new strategy, the Catalysts division was restructured, effective January 1, 2025; as a result, the Surface Technologies segment will now comprise three standalone businesses going forward instead of two: The Coatings division will remain unchanged, while the Battery Materials and Environmental Catalyst and Metal Solutions (ECMS) business units have been established as separate divisions. Additionally, the chemical and refining catalysts business, formerly part of the Catalysts division, will be reported as part of the Performance Chemicals division in the Industrial Solutions segment from now on. As a result, the BASF Group comprises 12 operating divisions as of the beginning of the 2025 business year.
In addition, the activities of the Net Zero Accelerator unit were integrated into existing divisions and service units, effective January 1, 2025, ensuring that BASF's green transformation is aligned even more closely with market trends so that the businesses can even better react to new customer requirements.
Business and competitive environment
As a global company, BASF is present in a large number of markets and operates in the context of various local, regional and global developments. These include:
The global economic and political environment
Legal and political requirements
International trade agreements
Industry standards
Environmental agreements (such as the EU Emissions Trading System)
Social aspects (such as the U.N. International Bill of Human Rights)
Ludwigshafen aims to be a leading, sustainable chemical site for Europe and a strong pillar for BASF's success
BASF supplies products and services to around 74,000 customers1from various sectors in almost every country in the world. Our customer portfolio comprises mainly major global customers and medium-sized enterprises. We focus on a business-to-business model and on being a partner for a wide range of downstream industries throughout the world.
We work with over 70,000 Tier 1 suppliers2worldwide. They provide us with important raw materials, chemicals, investment goods and consumables, and perform a range of services.
Our most important global competitors include Arkema, Bayer, Celanese, Clariant, Corteva, Covestro, Dow, DSM-Firmenich, Eastman, Evonik, Huntsman, LyondellBasell, SABIC, Sinopec, SYENSQO, Syngenta, Wanhua and many hundreds of local and regional competitors. We expect competitors from Asia, North America and the Middle East in particular to gain increasing significance in the years ahead, especially as a result of advantageous raw materials and energy prices. BASF is a top-three market leader in roughly 75% of its core businesses. Equally, our standalone businesses have good to leading positions in their respective markets.
BASF sales by region 2024
By location of customer
9.9%South America, Africa, Middle East
38.0%Europe
€65,260 million
24.9%Asia Pacific
27.2%North America
Corporate legal structure
BASF SE, the BASF Group's publicly listed parent company, plays a core role: Directly or indirectly, it holds the shares in the companies belonging to the BASF Group and is also one of the largest operating companies. A total of 268 companies including BASF SE are fully consolidated. Nine joint operations are accounted for pro rata, while 24 companies are accounted for using the equity method.
1The number of customers refers to all external companies (sold-to parties) that had contracts with the BASF Group in the business year concerned under which sales were generated.
2BASF considers all direct suppliers of the BASF Group in the business year concerned as Tier 1 suppliers. These are suppliers that provide us with raw materials, investment goods, consumables and services. Suppliers can be natural persons, companies or legal persons under public law.
Strategy
Chemistry is our passion. We set a new direction for ourselves with the introduction of the "Winning Ways" strategy in September 2024: Our ambition is to be the preferred chemical company to enable our customers' green transformation. We aim to grow profitably and create value for our shareholders with our broad portfolio of chemicals businesses as well as our product and process innovations. Simultaneously, we are driving the shift toward a performance culture - a decisive factor to successfully implement our "Winning Ways" strategy. We are systematically integrating sustainability topics into our strategy and business as well as into our assessment, steering and compensation systems. This principle remains embedded in our corporate purpose: We create chemistry for a sustainable future.
Humankind is facing enormous challenges in its efforts to preserve a world worth living in for future generations. The climate is changing, natural resources are becoming scarcer, pressure on ecosystems is increasing and our growing world population needs to be fed. More and more urgently than ever, solutions are needed for a more sustainable future. Chemistry is of key importance as an essential part of our everyday lives and the foundation of nearly all industries. It can pave the way to greater sustainability and accelerate the transformation needed to achieve this.
Competitive conditions in the chemical industry are changing. Our customers are also adapting their business models - to increasingly reflect a world with lower CO2emissions and a more circular economy. The speed of this green transformation varies across regions and customer industries. We expect demand for chemical products with sustainability attributes to surpass supply in the medium term, which in turn will lead to greater willingness to pay for low-emission solutions. Because our customers are at the center of everything we do, our ambition goes beyond the green transformation of our own production. We want to be the preferred chemical company to enable our customers' green transformation.
This is also where we see the main driver of our profitable growth: Our goal is for customers to be successful in their respective markets thanks to our innovations. Our products, solutions and technologies help protect the environment and climate by contributing to the more efficient use of raw materials, reducing waste, and enabling healthy and affordable food as well as climate-smart mobility. In providing our customers with the best solutions and processes, we also want to grow profitably and create shareholder value. Simultaneously, we are driving the change of our corporate culture toward a performance culture. We have defined four levers to ensure the successful implementation of our "Winning Ways" strategy: Focus, Accelerate, Transform and Win.
As part of its new strategy, BASF has updated its shareholder distribution policy and set medium-term financial targets for the first time. We remain committed to our climate protection targets and other global sustainability-related targets, including the alignment with our TripleS (Sustainable Solution Steering) portfolio assessment methodology. We have defined a new circular economy target and we have adjusted our supplier target and are now focusing on improving the sustainability performance of those suppliers whose audit results were inadequate.
In the future, BASF will place a greater focus on cash generation. We aim to demonstrate a high degree of capital discipline through considerably lower capital expenditures and the consistent implementation of our cost savings programs.
As an international chemical company, we will continue to operate in markets and countries with different requirements and conditions. We are guided by our values and our global standards in order to act responsibly and secure our license to operate. The main guidelines are summarized primarily in our BASF policies on compliance, human rights, labor and social standards and in the Supplier Code of Conduct. With appropriate management and monitoring systems, we want to ensure that we act in line with the applicable laws and uphold our responsibility to the environment and society. Customers, shareholders, partners and employees can rely not only on the high quality of our products, but also on the way in which we conduct business to fulfill our corporate purpose: We create chemistry for a sustainable future.
With our CORE values, we combine economic success with the creation of value for the environment and society and stand for respectful interaction with each other and with our customers and partners:
C - creative: We make great products and solutions for our customers. This is why we embrace bold ideas and give them space to grow. We act with optimism and inspire one another.
O - open: We value diversity, in people, opinions and experience. This is why we foster feedback based on honesty, respect and mutual trust. We learn from setbacks.
R - responsible: We value the health and safety of people above all else. We make sustainability part of every decision. We are committed to strict compliance and environmental standards.
E - entrepreneurial: We focus on our customers, as individuals and as a company. We seize opportunities and think ahead. We take ownership and embrace personal accountability.
Our standards are based on, and in some cases, exceed existing laws and regulations and take internationally recognized principles into account. We respect and promote:
The Universal Declaration of Human Rights of the United Nations (U.N.) and the two U.N. Human Rights Covenants
The Ten Principles of the U.N. Global Compact
The core labor standards of the International Labour Organization (ILO) and the Tripartite Declaration of Principles Concerning Multinational Enterprises and Social Policy
The OECD Guidelines for Multinational Enterprises
The Responsible Care®Global Charter of the International Council of Chemical Associations
The German Corporate Governance Code
Our ambition
To be the preferred chemical company to enable our customers' green transformation.
BASF's strategic direction is based on a comprehensive analysis of our markets, competitors and the economic environment. We continuously monitor global trends and short-term developments and anticipate the resulting opportunities and risks. In doing so, we keep a close eye on the demands of our customers and the transformation of our company.
Our new "Winning Ways" strategy is based on four strategic levers:
Focus, Accelerate, Transform and Win.Focus
Under the Focus lever, we have redefined our portfolio management approach. BASF now makes a distinction between core businesses and standalone businesses, which serve specific industries and operate independently. The core businesses comprise the Chemicals, Materials, Industrial Solutions and Nutrition & Care segments, which are integrated into BASF's value chains and Production Verbund at major sites. They generate value through efficient use of resources, operational excellence and cost efficiency. The portfolio of our core businesses ranges from basic chemicals to specialties. The standalone businesses, which have greater flexibility and operational independence, comprise the Surface Technologies segment with the Environmental Catalyst and Metal Solutions (ECMS), Battery Materials and Coatings divisions as well as the Agricultural Solutions segment.
In the coming years, we will focus on strengthening our core businesses and growing profitably in these areas - both organically as well as through value-increasing acquisitions: We see the expected consolidation of the chemicals industry as an opportunity for BASF. We want to operate our core businesses in an even more cost-efficient and leaner manner in order to secure their profitability and competitive advantage over emerging competitors, in particular from the Middle East and China.
Our standalone businesses ECMS, Battery Materials, Coatings and Agricultural Solutions compete with pure-play peers that are subject to their own market trends. To empower these businesses to respond quickly to the specific requirements of their customers, we want to further promote their entrepreneurial freedom and thus strengthen their competitive position. To that end, we are pursuing a Differentiated Steering concept with industry-specific financial steering indicators, adjusted governance structures, tailor-made processes and standalone ERP (enterprise resource planning) systems. These measures increase the businesses' accountability and the transparency of their performance compared with competitors. We intend to make further investments in our standalone businesses in the future and will continue to actively pursue portfolio options:
Our ECMS business was carved out in 2023. It operates in a low-growth industry but continues to deliver a strong cash contribution. We are open to a value-increasing transaction in the future.
Our Battery Materials business operates in a rapid-growth environment characterized by high market and technology risks. We are de-risking the path forward by focusing on filling existing capacities and adapting our expansion plans. We are exploring opportunities for collaboration with partners.
For our Coatings division, we are assessing strategic options for value creation. In February 2025, we signed an agreement to sell our decorative paints business in Brazil.
For the Agricultural Solutions segment, we will complete the legal separation and the introduction of a separate ERP system by 2027. By then, we also want to create the conditions for a potential IPO. In the medium term, a minority share listing is an option.
To focus more strongly on cash generation and strengthen our capital discipline, we are changing our internal steering processes for capital and resource allocation. We are moving from a largely project-based approach at BASF Group level to a strategic allocation approach for our divisions. We have developed medium-term value creation plans for the divisions based on their respective roles in the BASF portfolio. These plans are the basis for capital allocation. Within this framework, the divisions are empowered with increased autonomy to make business decisions - and with it their accountability for business success.
The strategic focus on profitable growth also means prioritizing high-growth markets. In particular, we want to expand our
presence in China, India and five ASEAN countries (Indonesia, Malaysia, Singapore, Thailand and Vietnam) by strengthening local organizational structures, our production sites and our R&D activities. These seven countries will account for almost 80% of global chemical growth by 2035.
Accelerate
With the Accelerate lever, BASF is targeting more speed in value creation. We will streamline the way in which we collaborate and complete tasks at BASF and become faster as a result. To this end, we want to empower our business units through lean and differentiated steering, simplify our organizational structure and increase the use of artificial intelligence (AI).
The accountability of the divisions will be a central element of the BASF Group's steering. The Board of Executive Directors will focus on topics that are important to BASF as a whole: strategy, portfolio management, capital allocation and talent development. By contrast, individual divisions will have greater ownership of specific business decisions and accountability for business success. In line with this, we will further develop the performance management system for our leaders and employees and establish a closer link between incentives and unit-specific performance.
We are making our organization simpler and leaner by sharpening role clarity, establishing flatter hierarchies and by reducing bureaucracy and internal alignment processes. Spans of control will be broadened to increase individual ownership. An important step in this direction is dissolving the regional dimension of our organizational structure. With this simplified organizational setup, we are aiming to accelerate decision-making in all areas of our company.
BASF wants to harness the potential of AI to advance productivity and accelerate innovations. We aim to gradually enable the global BASF team to utilize AI for their respective areas of work. Here, we target key functions such as sales, marketing, R&D, production, procurement and services and focus on applications with added value confirmed by fast and effective pilot projects.
Transform
The Transform lever represents shaping and successively implementing our market-oriented green transformation toward a more sustainable product portfolio. Going forward, we will intensify our focus on products with sustainability attributes where we see increasing customer demand.
We see sustainability as an integral part of our strategy as well as our targets, steering processes and business models. We remain fully committed to our climate protection targets. Our ambition goes beyond the green transformation of our own production: Our key customer industries are facing tremendous challenges in achieving their transformation targets. We therefore want to be the preferred chemical company to enable our customers' green transformation with our broad portfolio as well as our product and process innovations.
As market developments and therefore also the speed of the green transformation vary between regions and customer industries, we are adapting our transformation approach: Rather than focusing primarily on our own corporate targets, we will prioritize a market-oriented approach in the future. By driving transformation in a more differentiated and focused way as well as in line with market growth and increasing customer demand, we are forging a new path toward profitable growth. With our market-oriented concept, we are simultaneously mitigating the investment and business risks resulting from capital-intensive new technologies and the varying transformation speed of our customer industries. We want to intensify our focus on specific opportunities for our business and increase volumes of products with sustainable attributes according to customer needs. To that end, we are prioritizing projects where we see customer demand growing or that impact our license to operate.
Over time, we will stagger further transformation projects based on these priorities. We have already procured significant amounts of renewable energy to operate our plants. Furthermore, we are currently piloting new technologies in selected value chains, using alternative raw materials and have launched products with new sustainable attributes such as a reduced or net-zero product carbon footprint (Low/Zero Product Carbon Footprint; LowPCF/ZeroPCF). In the next phase, we will focus on ramping up the use of bio-based and recycled feedstocks in our existing plants and thus offering more products with a reduced carbon footprint and other sustainable attributes at low capital expenditure. At the same time, we will continue evaluating new business models and technologies. As markets for sustainable products grow, we want to be in a position in the medium to long term to apply and scale up the new technologies we are currently developing and in some cases already piloting. The gradual approach is also reflected in spending: Transformation-related spending is expected to be moderate from 2025 to 2028, averaging €600 million per year. We assume that most major capital expenditures for our green transformation will be made after 2030.
BASF's integrated Verbund system offers fundamental advantages for the transformation approach of prioritizing projects based on customer demand and gradually driving them forward. This is due to the energy and resource efficiency provided by the Verbund and the numerous entry points that offer feedstock flexibility. We can be flexible and scalable in how we employ renewable and recycled feedstocks in existing plants. We therefore expect that our largest site in Ludwigshafen, Germany, with its integrated Verbund, as well as BASF as a whole, will benefit from the change and growth momentum in connection with the green transformation. In the medium to long term, our goal is to successfully develop Ludwigshafen into a leading, sustainable chemical site for Europe with an improved competitive position in the European market. To that end, we have conducted a thorough analysis of our production asset structure based on current and future market and customer demand: Selected plants and production lines are no longer delivering sufficient earnings or are at risk of losing competitiveness. However, the majority of the assets in the Ludwigshafen Verbund are competitive in their respective markets.
Win
The Win lever is how we want to drive change in corporate culture throughout the entire company. Our "Winning Culture" is based on three cultural topics - Accountability (Own it!), Speed (Drive it!) and Improvement Mindset (Excel in it!) - that are central to BASF evolving into an even more performance-driven organization. This transformation to a "Winning Culture" is a decisive factor for us in successfully implementing our "Winning Ways" strategy.
To this end, we have developed nine actionable Winning Behaviors: They define the behavior that we expect all our employees to demonstrate and show in a concrete way how each and every individual can contribute to successful change. We want to drive a corporate culture that honors accountability, prioritizes speed over perfection and rewards the best solution over compromises.
Accountability:
We give and take ownership over narrow supervision.
We strive for results, not staying in the comfort zone.
We take action on low performance, not dragging it along.
Speed:
We prioritize speed over perfection.
We spread motivation and inspiration, not skepticism.
We focus, not do a bit of everything.
Improvement Mindset:
We fight for the best solution over compromises.
We give candid and constructive feedback, not empty phrases.
We learn from external perspectives, not just from internal views.
Our CORE corporate values (creative, open, responsible, entrepreneurial) will remain the guide for our behavior.
Further developing our corporate culture goes hand in hand with an enhanced performance management system for leaders and employees with a closer link between incentives and unit-specific achievements.
For us, long-term business success means creating economic, ecological and social value, which is why we pursue ambitious targets along the entire value chain. We report transparently on target achievement so that our stakeholders can track our progress.
Our objective is profitable growth - we have set new financial targets as part of our corporate strategy and adjusted our dividend policy. In the 2028 business year, we want EBITDA before special items to reach a value between €10 billion and €12 billion in moderate to good economic conditions. The cumulative free cash flow for 2025 to 2028 is expected to be more than €12 billion. For the return on capital employed (ROCE), we endeavor to achieve a figure of around 10% in 2028. In the 2024 business year, EBITDA before special items was €7.9 billion, free cash flow was €0.7 billion and ROCE was 5.1%.
In the medium term, we want to keep the overall distribution to shareholders at least at prior-year levels through a combination of dividends and share buybacks and will pay out a minimum of €12 billion to our shareholders between 2025 and 2028. Specifically, we want to pay out a dividend of at least €2.25 per share or around €2 billion per year. This policy already applied to the dividend for the 2024 business year, which will be paid out in 2025. A dividend of €2.25 per share has been adopted in the Annual Shareholders' Meeting for 2024.
We have also set ourselves comprehensive targets in the area of sustainability. By 2030, we want to reduce our CO2emissions from production (Scope 1) and energy purchases (Scope 2)1by 25% compared with 2018 (2018: 21.9 million metric tons, 2030 target: 16.4 million metric tons). In the 2024 business year, this figure was 17.0 million metric tons of CO2equivalents (2023: 17.0 million metric tons2). By 2030, we want to reduce the specific CO2emissions from the purchase of our raw materials (Scope 3.1)3by 15% compared with 2022 (2022: 1.64 kilograms of CO2per kilogram of raw materials purchased, 2030 target: 1.39 kilograms). Our specific Scope 3.1 emissions in 2024 amounted to 1.58 kilograms of CO2per kilogram of raw materials purchased (2023: 1.67 kilograms4). By 2050, we endeavor to reach net-zero greenhouse gas emissions (Scope 1, 2 and 3.1).
We are fully committed to our climate protection targets and the transformation of the chemical industry.
1 Scope 1 and Scope 2 (excluding the sale of energy to third parties). The target includes greenhouse gas emissions according to the Greenhouse Gas Protocol that are converted into CO2equivalents (CO2e). The base year is 2018.
2 The figure for 2023 has been adjusted due to updated data.
3 Scope 3.1, raw materials excluding battery materials, services and technical goods, excluding greenhouse gas emissions from BASF trading business. Future adjustment of the baseline in line with the "Together for Sustainability" guideline (TfS) possible depending on the availability of further primary data. The base year is 2022. In the reporting year, we adjusted the baseline in line with the TfS guideline due to the availability of further primary data.
4 The figure for 2023 was adjusted due to increased data availability.
We are working to further increase sustainability in our supply chains. Our previous target was to have 80% of suppliers improve their sustainability performance upon reevaluation. Moving forward, we are concentrating on suppliers that generated inadequate results in evaluations. For the time frame up to 2030, we are working toward ensuring that, annually, 80% of suppliers who underwent a sustainability evaluation during the reporting period, and who had inadequate results in a prior comparable evaluation, improve their sustainability performance. In 2024, the figure was 76%. With the new target, we want to sharpen our focus on and gear our measures even more strongly toward suppliers with increased risk in terms of sustainability.
We intend to align our portfolio and the work of our research and development units even more closely with climate protection and the circular economy. For this purpose, we rely on the assessment of our product portfolio using the TripleS methodology (Sustainable Solution Steering). By 2030, we want to achieve more than 50% of BASF sales relevant for TripleS5from Sustainable-Future Solutions - products that make a positive contribution to sustainability. In 2024, these products accounted for 46.3% of BASF sales (2023: 41.4%). We also introduced a new target for circular economy solutions, known as Loop Solutions, in 2024. By 2030, we want to achieve €10 billion in sales with these solutions. Sales with Loop Solutions stood at €5.7 billion in 2024.
We want to establish sustainable water management at all production sites in water stress areas6and at our Verbund sites by 2030. In 2024, we reached a share of 65% (2023: 57%)7.
In production, we want to further improve safety and focus on reducing high-severity work-related accidents and process incidents. By 2030, we aim to achieve a rate of no more than 0.10 High Severity Process Safety Incidents (hsPSI) per 200,000 working hours. The global rate of hsPSI in 2024 was 0.03 (2023: 0.05 hsPSI). For the period up to 2030, we are also committed to a maximum rate of 0.05 High Severity Work Process Related Injuries (HSI) per 200,000 working hours. In the 2024 business year, this figure stood at 0.02 HSI (2023: 0.03 HSI).
Furthermore, we have set ourselves the target of increasing the proportion of women in leadership positions to 30% by 2030.8The global proportion of women in positions with disciplinary responsibility was 29.3% in 2024 (2023: 28.4%). Furthermore, we would like to create a work environment in which more than 80% of our employees feel that they can thrive and perform at their best at BASF. In 2024, we reached a rate of 79% (2023: 79%).
With our "Winning Ways" strategy, we target profitable growth and value creation
Focus Accelerate Transform Win
5 The definition of the relevant portfolio and further information can be found in the TripleS manual at basf.com/en/sustainable-solution-steering.
6 We define water stress areas as regions in which more than 40% of available water is used by industry, households and agriculture. Our definition is based on the Water Risk Atlas (Aqueduct 4.0) published by the World Resources Institute. For more information, see wri.org/aqueduct. Our water target also continues to take into account the sites that we identified as water stress sites in accordance with Pfister et al. (2009) prior to 2019, as well as water stress sites according to Aqueduct 3.0.
7 By including water stress sites according to Aqueduct 4.0, the number of sites required to implement sustainable water management increases. As a result, the implementation status for 2023 has decreased and been adjusted accordingly.
8 By doing so, we act in accordance with applicable local laws.
BASF in Asia Pacific
BASF in Asia Pacific
Present in
19
markets
2
Verbund sites
1
Verbund site
(under construction)
Around
production sites
70
21,971
employees, of which
27.4% are female
2,042
new hires, of which
35.0% are female
Around
€16.2 billion
sales
by location of customer
Group Capex 2025-2028
€16.2 billion of which
28%
dedicated to Asia Pacific
Innovation Campuses
in Asia Pacific
2
BASF in Greater China Report 2024 BASF inBAsSiaF PGarcoiufipc 19
BASF in Greater China
BASF has been a committed partner to Greater China since 1885. With larger production sites in Shanghai, Nanjing, Chongqing and Zhanjiang (under construction), BASF is a major foreign investor in the country's chemical industry, and operates the Innovation Campus Shanghai, BASF's largest R&D site in Asia. BASF posted sales of approximately €8.6 billion1in 2024 to customers in Greater China and employed 12,687 people as of the end of the year.
BASF currently operates 27 major wholly-owned subsidiaries, 11 major joint ventures, and maintains 28 sales offices in Greater China. BASF's business in Greater China includes Petrochemicals, Intermediates, Performance Materials, Monomers, Dispersions and Resins, Performance Chemicals, Care Chemicals, Nutrition & Health, Coatings, Environmental Catalyst and Metal Solutions, Battery Materials, and Agricultural Solutions.
These solutions are used in almost all areas of daily life such as in houses, cars, food, agriculture, pharmaceuticals, textile, household goods, electronic equipment and packaging. As of the end of 2024, BASF has cumulatively invested more than
€13 billion in Greater China (approximately €17 billion with partners) to build a locally competitive production, marketing, sales, technical service and innovation network.
Greater China headquarters Selected sales offices Selected production sites Verbund site
Verbund site under construction R&D/Technical centers
Our footprint in Greater China
Nanjing
ShanghaiZhanjiang
Updated as of April 30, 2025, some sites are not shown in the map due to scale. Map reference: GS (2023) 2767, Ministry of Natural Resources of China
BASF in Greater China
Sales in 2024 (by location of customer) approximately
€8.6 billion
Employees (as of December 31, 2024)
12,687
1 Sales of BASF Group companies in the scope of consolidation, as of December 31, 2024. Sales of joint ventures and associated companies with BASF's investment of between 20% and 50% in general which are consolidated at equity (e.g., BASF-YPC Company Limited) are not included.
Major production sites in Greater China
BASF Shanghai Pudong Innovation Park
BASF Nanjing Verbund site
An integrated site with global, regional and local activities for research and development, production, sales and marketing, and functional units
Location: Gaoqiao, Pudong, Shanghai
Key milestones:
Products: Advanced materials including Ultramid®(polyamide, PA), Ultradur®(polybutylene terephthalate, PBT), polyurethane systems, Elastollan®thermoplastics polyurethane elastomers (TPU) and Cellasto®(microcellular polyurethane), acrylic dispersions and copolymers colorants, detergent, metal complex dyes, leather auxiliaries, polyvinylpyrrolidone (PVP K30), inverse emulsion for water treatment and mobile emissions catalysts
An integrated Verbund site jointly run by BASF and Sinopec (50 - 50)
Location: Nanjing Jiangbei New Materials High-Tech Park, Jiangsu
Key milestones:
Products: Low density polyethylene, ethylene-vinyl acetate, ethylene glycol, polystyrene, acrylic acid and acrylic esters, non-ionic surfactants, superabsorbent polymers, n-butanol, iso-butanol, 2-propyl-heptanol, butadiene, polyisobutene, etc.
2024 facts and figures
BASF Chongqing site
BASF Shanghai Caojing site
A major production site with one wholly-owned company and two joint ventures
Location: Shanghai Chemical Industry Park, Caojing, Shanghai
Key milestones:
Major companies:
Products: Polytetrahydrofuran (PolyTHF®), TDI (toluene diisocyanate), MDI (methylene diphenyl diisocyanate), polyisocyanate (Basonat®), precious metals-based salts and solutions, automotive coatings, resins and electrocoat, polyamide polymerization, process catalysts and crude naphtha
BASF Nanjing site
A BASF wholly-owned production site for multiple products, including water-treatment monomers, amine products and coating additives
Location: Nanjing Jiangbei New Materials High-tech Park, Jiangsu
Key milestones:
Products: ACM, AGEFLEX®FA1Q80MC, Anionic Flocculant, Cationic Flocculant, t-BA (tert.-Butylamine), DMAPA (3-(dimethylamino)Propylamine), PEA (polyetheramine), N-Octylamine A/P, 1,2-Propylenediamine, additives for painting, ink, coating and adhesive
A BASF wholly-owned production site for MDI (methylene diphenyl diisocyanate)
Location: Changshou Economic and Technological Development Area, Chongqing
Key milestones:
Product: MDI with annual capacity of 400,000 metric tons
BASF Zhanjiang Verbund site (under construction)
Built and operated under the sole responsibility of BASF. Upon completion, the site will be BASF's largest investment and ultimately BASF's third-largest site worldwide (following Ludwigshafen, Germany, and Antwerp, Belgium)
Location: Zhanjiang Economic and Technological Development Zone, Guangdong
Key milestones:
Investment: Around €10 billion in total
Plants and products:
and is expected to be put into operation by the end of 2025, including a steam cracker and several downstream plants to produce petrochemicals and intermediates, among others.
Innovation
Innovation is the backbone of BASF's success as a leading chemical company and is the key driver for its profitable growth. China is now the largest chemical market in the world, and there is a growing demand for more sustainable products and solutions. We focus on developing sustainable solutions for our customers by helping them to reduce their products' carbon footprint, to use resources more efficiently or to manufacture products in a more eco-friendly way. This is how we safeguard our competitiveness in the long term and make our contribution to the society.
Growing R&D capabilities in China
BASF has been continuously expanding its research and development footprint in China to drive innovation by integrating customer and market needs at an early stage. The Innovation Campus allows BASF to bring together all the stakeholders in the innovation chain, including research and development (R&D), business, and production units in an integrated site. The Innovation Campus is an integral part of BASF's global innovation network and runs global, regional, and local R&D projects.
The Innovation Campus Shanghai, located at the BASF Shanghai Pudong Innovation Park, was inaugurated in 2012, and expanded in 2015, 2019 and 2023. Combining the technical development capabilities of the operating divisions with industrial design expertise, the Innovation Campus Shanghai serves the demand of almost all major industries. The total investment in Innovation Campus Shanghai is around €280 million.
In 2024, BASF opened its brand-new microbiological lab at the Innovation Campus Shanghai. This new facility marks a new step forward for its research capabilities in Asia. The new lab empowers BASF to conduct comprehensive microbiological testing. Researchers can precisely monitor the microbial content and predict the microbial contamination risk of their products.
Digital technologies are indispensable for everyday R&D work.
Researchers are discussing particle size distribution data. Data generated from the high throughput system help scientists better understand and predict the complex chemical and physical interactions between particle surfaces and the solvent in which they are suspended, allowing experiment design to be more effective and reasonable.
BASF's largest R&D center in Asia Pacific
Focus: R&D for chemicals and catalysis, materials, specialty chemicals, analytics, digitalization for R&D, Creation Center
The BASF Branch of the Pudong District Postdoctoral Programme has been upgraded to national-level upon approval of China's National Human Resources and Social Security Department and National Postdoctoral Management Committee in 2024. This is a significant breakthrough for BASF in developing scientific research platforms and the cultivation of high-level Research and Development talents, which will further enhance the company's competitive advantages in attracting top talents and obtaining support on R&D from the authorities.
BASF is strengthening its R&D footprint across China. In February, BASF inaugurated its Verbund Technology Center at the Zhanjiang Verbund site. The Center is dedicated to the research and development of Verbund process optimization, digitalization, and sustainable development. In August, BASF inaugurated its new Application and Technical Center of the Coatings division in Jiangmen, China. Located within the site of BASF Coatings (Guangdong) Co., Ltd., the center marks another major milestone in the continuous expansion of BASF Coatings' global refinish technology network.
In 2024, BASF strengthened innovation with local customers towards green transformation. For example, BASF launched Haptex®4.0, an innovative polyurethane solution for the production of synthetic leather that is 100% recyclable. Without the need of layer peel-off process, synthetic leather made with Haptex 4.0 and polyethylene terephthalate (PET) fabric can be recycled together when using an innovative formulation and recycling technical pathway. This makes the reuse of the materials feasible.
The R&D teams of BASF and Prohero joined forces and co-created the frame of floating sunglasses containing 30% bio-content. The bio-based Ultramid®has been instrumental in advancing the development of Prohero's next-generation consumer product, and maintaining its leading position in environmental, social, and corporate governance.
BASF also launched Emulgade®Verde, a series of innovative and green emulsifiers to support cosmetic manufacturers in creating high-performing, sustainable personal care products. The first two products are Emulgade®Verde 10 MS and Emulgade®Verde 10 OL. Both are based on 100% renewable feedstocks and are readily biodegradable. Furthermore, they are manufactured through a solvent-free and environmentally friendly process.
Driving open innovation with academia and industry
BASF places great value on open innovation through close collaboration with academic and industry partners around the world. It has a global network of around 260 partners from universities, institutes, and companies.
In the Asia-Pacific region, the Network for Asian Open Research (NAO) serves as a joint platform with BASF working alongside leading universities and institutes, such as the Chinese Academy of Sciences, Institute of Science Tokyo, Zhejiang University, and the Indian Institute of Technology Bombay. 2024 marked the 10th anniversary of NAO. The projects driven by NAO encompass a wide range of research areas, including material recycling and upcycling, renewable raw materials, digitalization, sustainable processes and e-mobility.
In 2024, BASF was honored as one of the "Blue Whale 50 - Top 50 Global Large Enterprises in Open Innovation" by the Technology Innovation Research Centre of Tsinghua University (TIRC) and Plug and Play China, recognizing its commitment to scientific and technological innovation. Additionally, the Shanghai Pudong New District acknowledged the successful establishment of BASF's Open Innovation Center, which became part of the Group Open Innovation (GOI) program in 2022. This partnership aims to foster collaborations with small and medium-sized technology enterprises and drive the effective transformation of scientific research outcomes, enhancing BASF's innovation efficiency and contributing to the overall innovation ecosystem.
Business Development
In 2024, BASF reported sales of approximately €8.6 billion to customers in Greater China. BASF strives to be the preferred chemical company to enable customers' green transformation. To achieve this goal, we are committed to being close to our customers and growing together with them. As of 2024, BASF has invested more than €13 billion in Greater China (approximately €17 billion with partners) to build a locally competitive production, marketing, sales, technical service, and innovation network. Our investments enable us to serve our local customers' needs with sustainable and innovative products and solutions.
Sales of BASF Greater China (by location of customer)
Million €
8,599
9,366
2024
2023
Growing capability in local production and R&D
At BASF, we prioritize investing in regions where our customers are located and where there is market growth. In line with this strategy, we are committed to strengthening our advanced production plants and expanding our research and development capabilities in China.
In May 2024, BASF announced to invest in the expansion of its advanced additives plant at its Nanjing site. This new expansion includes a state-of-the-art production line for BASF's high-performance controlled free radical polymerization dispersants based on its unique and cutting-edge technologies. Designed to meet stringent environmental standards, the new plant will feature cutting-edge processes that reduce CO2emissions. Operational commissioning is slated for late 2025.
In Huizhou, BASF inaugurated a second polymer dispersions production line at its Daya Bay site in the same month. This expansion enhances responsiveness to customer requirements in the coatings, construction, adhesives, and packaging industries while reinforcing regional market leadership.
The BASF Zhanjiang Verbund site project, with a total investment of around €10 billion, is progressing steadily as scheduled. The site is now focusing on building its core of the Verbund, including a steam cracker and several downstream plants.
In March 2024, BASF broke ground on a methyl glycols plant at the Zhanjiang Verbund site. The new plant is designed with an annual capacity of 46,000 metric tons and aims to meet the rapidly growing demand for brake fluids in the region. In November, BASF launched Easiplas®, a new brand of High-Density Polyethylene (HDPE), alongside reaching significant construction milestones at the HDPE plant at the Zhanjiang Verbund site. The new HDPE plant will produce 500,000 metric tons annually, providing solutions to meet the growing demand across the consumer goods, packaging, construction, and transportation industries. These two plants are scheduled to commence operations by the end of 2025.
In October 2024, the first Central Operations Building for Infrastructure, Offsite & Utilities at the Zhanjiang Verbund site was inaugurated. In November, all steam cracker modules at the site were successfully installed, marking a significant milestone on the journey toward the startup of the core of the Verbund by 2025.
Transforming for low-carbon production
As a leader in climate-neutral manufacturing, BASF is committed to incorporating sustainability across its operations through cutting-edge and low-emission production processes.
In 2024, BASF Rudong site achieved zero1CO2emissions by converting its existing site heating system from steam to electricity sourced from renewable energy. This site became the first site within BASF's Agricultural Solutions segment to attain CO2emission-free status.
Awarded the ISCC PLUS certification in 2024, the Polyamide 6 (PA6) plant in Shanghai is now ready to supply both biomass balanced and Ccycled®PA6 and PA6/6.6 copolymer in Asia Pacific, demonstrating BASF's strong determination to promote sustainability in the region.
BASF's Coatings division renewed its agreement to procure 100% renewable electricity at its automotive OEM coatings manufacturing operations in Shanghai in 2024. Through a combination of renewable direct power purchases, international renewable energy certificates, and other measures, BASF's Coatings division continued to support the Chinese automotive industry in reducing the product carbon footprint (PCF) of its vehicles and enable customers in achieving their sustainability goals.
The Carbon Trust, a globally recognized climate change organization and PCF verifier, has confirmed that the formic acid produced at BASF Nanjing Verbund site achieved the Carbon Trust label and Lower than Market claim in 2024. This confirms that the products have a cradle-to-gate PCF lower than the market average for fossil-based equivalent products. The validation is until May 2026.
BASF inaugurated its Verbund Technology Center (VTC) at the Zhanjiang Verbund site in 2024.
The Analytics Innovation Center, a vital part of the VTC, delivers high-end analytical research support and services, ranging from in-process analysis to final product quality control.
1 Scope 1 and Scope 2 (excluding the sale of energy to third parties, including offsetting). The target includes greenhouse gases according to the Greenhouse Gas Protocol, which are converted into CO2equivalents (CO2e).
Co-creating sustainable solutions with customers
At BASF, we are driving innovations for a sustainable future, focusing our portfolio on growth areas and developing products with a lower carbon footprint. Through active participation in cross-industry collaborations, we are dedicated to co-creating cutting-edge, sustainable solutions for the local markets.
At the 2024 Shanghai International Carbon Neutrality Expo in Technologies, Products and Achievements ("Shanghai Carbon Neutrality Expo", CNE), BASF, Asia Pulp & Paper, DBC Group, and Hunan Lido co-initiated the "Pioneer Alliance for Zero-Carbon Recyclable Paper Cups". The alliance seeks to lead the closed-loop management of raw materials and waste for paper cups utilizing BASF's Joncryl®High Performance Barrier (HPB) dispersions. These innovative water-based barrier coatings enable paper cups to be easily recycled at paper mills, facilitating the recycling process from production to regeneration.
BASF also signed an MoU for the establishment of a Green & C1 Advanced Chemical Technology Joint Laboratory with China BlueChemical Ltd. in CNE. This collaboration aims to establish a joint innovation platform focusing on the development of sustainable, green, and low-carbon technologies and solutions for the chemical industry, including CO2to Syngas Technology, green methanol and green ammonia applications, generation and purification of green hydrogen, synthesis of green olefins, oligomerization and hydrogenation of green olefins to produce sustainable energy carriers.
In the shipping industry, BASF leverages its advanced OASE®gas treatment technology and over 50 years of experience to support the industry's transition towards green and low-carbon solutions, addressing the increasing demand for decarbonization.
BASF and CSSC Power (Group) Corporation Limited (CPGC) signed a framework agreement on the actual ship application of the Onboard Carbon Capture System (OCCS) in 2024. CPGC will install its OCCS on several liquefied natural gas (LNG) carriers and use BASF's OASE®blue technology. OASE®blue is designed for CO2capture in flue gas, featuring low energy consumption, low solvent losses, and a flexible operating range. BASF also supported Wison New Energies in obtaining the Approval In Principle (AIP) from the Bureau Veritas (BV) for its low-carbon Floating Production, Storage, and Offloading (FPSO). By utilizing BASF's advanced technologies, OASE®post-combustion carbon capture, the project has achieved up to a 40% reduction in CO2emissions.
BASF and Li-Ning collaborated to produce fully recyclable concept shoes made exclusively of Elastollan®TPU.
In addition to forming strategic partnerships with its customers, BASF enhances the circular economy by using alternative raw materials and adopting advanced recycling technologies, and aims to achieve the shared goal of carbon neutrality.
At CHINAPLAS 2024, BASF presented various co-creations based on circular solutions. One significant innovation is a concept shoe made entirely of thermoplastic polyurethane (TPU), which BASF co-developed with Li-Ning. This shoe, made from BASF's Elastollan®TPU material, is 100% recyclable. It features mechanical properties such as durability and slip resistance while also being lightweighting and comfortable. This product combines the joy of sports with a recycling lifestyle, serving as an excellent example of the circular economy.
Besides, BASF and Shandong Wiskind Architectural Steel Co., Ltd. (Wiskind) introduced new sustainable polyurethanes (PU) sandwich panels for cold chain applications at CHINAPLAS 2024. Through BASF's biomass balance (BMB) solution, 100% of the fossil-based organic materials required for production can be replaced by sustainably sourced and certified renewable feedstock in the production, significantly reducing the PCF throughout customers' value chain. By adopting BASF's BMB solution, Wiskind became the first polyurethane sandwich panel manufacturing company in the Asia Pacific region to receive ISCC PLUS certification.
For the construction industry, BASF unveiled a total solution photovoltaic frame, co-created with Jiangsu Worldlight New Material Co., Ltd. (Worldlight). Made with a PU composite and a water-borne coating, this frame reduces the product carbon footprint by 85% compared to aluminum frames. The water-borne coating also cuts volatile organic compound (VOC) emissions by over 90%.
To meet the demand for eco-friendly sunscreen products in China, BASF and Meifubao launched China's first ocean-friendly sunscreen in 2024. This sunscreen lotion uses a range of BASF's UV filters and has been certified by the BASF EcoSun Pass®, a methodology that evaluates the environmental impacts of sunscreen formulations. As China's first sun care product to receive this certification, it provides effective sun protection with a minimal ecological footprint.
In Taiwan, BASF collaborated with Axroma, a textile manufacturer, to transform discarded fishing nets into T-shirts. Axroma recovers polypropylene (PP) from the nets, creating recyclates which are then spun into fibers. BASF's IrgaCycle®additive solutions were used during the process to maintain fiber quality and increase recycled content in the T-shirt.
Diversified product portfolio boosting local customer growth
As a leading global chemical company, BASF maintains an unwavering commitment to China's dynamic market by delivering specialized chemical innovations to address the distinct requirements of diverse industrial sectors. Through this strategic focus, we not only empower sustainable innovation for international and domestic brands but also serve as a catalyst for their longterm expansion.
In 2024, BASF assisted Panasonic in launching the new "Shi Yue" study lamp. This lamp incorporates BASF's optical film product, NovaFlex GlareControl, which offers exceptional anti-glare characteristics and ensures the eyes' well-being. With that, Shi Yue became one of the first standing study luminaire products in China to achieve the highest AAAAA performance level certification in 2024.
BASF also formed a strategic cooperation with Thyseed, which now uses BASF's high-performance thermoplastic Ultrason®for bottles for babies and toddlers. This material is known for its durability, thermal stability, and safety. Through this cooperation, both parties aim to develop new products in Thyseed's portfolio and explore opportunities in the Chinese and international markets.
To support the development of agricultural nutrition sector in China, BASF and Anhui Huaheng Biotechnology (AHB) signed a strategic partnership in 2024. Both parties will collaborate in developing bio-stimulant products, as well as establishing a Plant Nutrition Application R&D Institute, which will support new product development, formulation, bio-measurement, and field trials.
At the Zhanjiang Verbund site, BASF actively collaborated with external partners to prepare for the startup. In April 2024, BASF signed a Letter of Intent (LoI) with Youyi Group. This agreement focuses on the supply of butyl acrylate (BA) and 2-ethylhexyl acrylate (2-EHA) from BASF's Zhanjiang Verbund site to cater to the increasing demand in the local adhesive materials industry.
In August, BASF signed an MoU with UPC Technology Corporation (UPC) to enhance long-term regional cooperation. BASF's Zhanjiang Verbund site will supply 2-Ethylhexanol (2-EH) and N-Butanol to UPC after its startup, to support the company's growing market demand, especially in South China.
In Taiwan, BASF and Lan Chyi Technologies Co., Ltd (Lan Chyi) formed a strategic partnership in 2024, to introduce advanced polyisocyanurate (PIR) materials into Taiwan's construction sector. This collaboration combines BASF's expertise in PIR technology with Lan Chyi's new continuous production line to meet market demand.
Driving the development of green transportation
China is the world's largest automotive market. As a leading solution provider in the automotive sector, BASF collaborates closely with industry partners to deliver diverse innovations and sustainable solutions, while driving the transformation toward green transportation.
At CHINAPLAS 2024, BASF, the Physical Research Center of the Yangtze River Delta, and Welion New Energy Technology showcased an innovative solid-state battery pack with over 20 advanced materials from BASF, enhancing electric vehicles' lightweighting, thermal management, safety, and sustainability.
BASF also collaborated with Autoliv China, a leading global automotive supplier for steering wheels, and unveiled steering wheels made with the 'Design-for-Recycling' foam solution containing recycled content at CHINAPLAS 2024. This technology enables simplified and scalable recycling of PU foam, and recycled material in turn, can be reintroduced into the 'Design-for-Recycling' foam formulation, supporting the circular economy.
BASF continued to deepen its cooperation with various major automotive manufacturers in 2024.
BASF collaborated with Xiaomi to create an elegant appearance and outstanding performance for the Xiaomi SU7, providing products such as CathoGuard®800 electrophoretic coating, ColorBrite waterborne basecoat, and ProGloss two-component scratch-resistant clearcoat, and participating in the entire painting and manufacturing process of the Xiaomi SU7 from color development to
In January 2025, BASF released its latest
Color Report for Automotive OEM Coatings,
highlighting a global shift in automotive color preferences toward warm niche colors
mass production. By incorporating digital technology and sustainable solutions, BASF supported Xiaomi Motors' goal of green and intelligent mobility, contributing to the advancement of the new energy vehicle industry.
BASF joined forced with Bosch Automotive Technology Service (Beijing) Co., Ltd. to collaborate on enhancing the automotive aftermarket business in 2024, with focus on providing superior quality and sustainable solutions in the automotive refinish sector. The two companies will work together to develop new commercial models, such as bodyshop refinish upgrading projects and certified bodyshop network expansions.
BASF also signed a strategic cooperation agreement with Anhui Jianghuai Automobile Group Co., Ltd. This partnership aims to drive innovation and sustainability in the automotive industry through technological advancements, process improvements, and the utilization of eco-friendly materials.
BASF played a pivotal role in supporting CFMOTO, a prominent domestic motorcycle manufacturer, in successfully launching their first motorcycle model compliant with the Euro 5 Second Phase (with catalyst On-Board Diagnostics) emission standards. This groundbreaking motorcycle, named 800MT, incorporates BASF's advanced emission control technology. The introduction of this model signifies CFMOTO's entry into the European market, where stringent emission standards are enforced, and supports the brand's expansion efforts by capturing larger market volumes.
Venture Capital and business adjustment
BASF Venture Capital (BVC) continues to catalyze innovation through strategic equity partnerships in 2024. In April, BASF announced its investments in Phomera Metamaterials Inc. (Phomera) during its Series A financing round to support the development of the photonic crystal metamaterial industry. This collaboration will drive Phomera's production scaling, product upgrades, and downstream market development.
In December 2024, BASF signed an MoU followed by an agreement in February 2025, to divest its shares in BASF Markor Chemical Manufacturing (Xinjiang) Co., Ltd. and Markor Meiou Chemical (Xinjiang) Co., Ltd. in Korla, China. The divestment was completed in April 2025. The companies operated production plants for butanediol and PolyTHF in the Chemicals segment.
For the love of farming, the biggest job on Earth
In 2024, BASF launched a new rice fungicide, Cevya®in China.
The introduction of this new product has further iterated and upgraded BASF's disease management solution for rice, an important staple crop. BASF's rice crop solution offers value to growers by improving quality and increasing yield.
Prizes and awards
Over the past year, BASF has been widely recognized by various industries and customers in Geater China for its outstanding innovation capabilities, diversified product portfolio, and exceptional services.
BASF's Care Chemicals division supports manufacturers of products that make life easier, safer, and more sustainable. BASF's Care Chemicals division received the Fountain Award in the "Best Emulsifier" Category at the 2024 Personal Care and Homecare Ingredients, which paid recognition to the outstanding performance of BASF's green emulsifier Emulgade®Verde 10 OL in the field of emulsion stabilization.
Recognized by local automotive OEMs and industry experts, BASF has established itself as an innovative partner in the domestic vehicles industry, renowned for its exceptional services and high-quality products. BASF's Coatings division was honored with the "NIO Quality Premium Partner" award for four consecutive years, and also received the supplier award from BYD. BASF's bio-based Sovermol®products, specifically its biomass balance series, were honored with the "Best-Case Award for Green Coating Technology" at the 22nd Waterborne Technology Annual Conference and Green Development Forum.
In the Agricultural Solutions division, BASF was awarded with the "Model Unit for the Safe and Scientific Use of Pesticides Training" award from the China Crop Protection Industry Association for eight consecutive years. The fungicide Cevya®and herbicide Arietta®were named "Green High-Quality Pesticide Products".
BASF was recognized as a "Demonstration Enterprise" for fertilizer and pesticide reduction by the China Agro-technological Extension Association for three years. The fungicide product Cevya®received the "Innovative Products" award, and Corn AgCelence®crop solutions were designated "Excellent Crop Solutions".
In the Battery Materials business unit, BASF Shanshan Battery Materials Co., Ltd. received the Award of Excellence from the National Nonferrous Metals Standard Committee in recognition of its contribution to two important technical standards for the battery industry. The company's Ningxia branch was honored as the "Host of Battery Materials Industrial Chain" in Ningxia autonomous region to play a leading role in the local new energy innovation.
The Environmental Catalyst and Metal Solutions (ECMS) business unit has been honored with the "Excellent Supplier Award" from Wuyang Honda Motor for four consecutive years and has received Cummins China's "Supplier of the Year" award for six consecutive years. ECMS also received the 2025 Excellent Contribution Award for Collaborative Research and Development from Weichai, showcasing BASF's expertise in catalyst technology, application engineering, and strong technical partnerships.
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BASF SE published this content on June 17, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on June 18, 2025 at 07:29 UTC.
