It is likely to include a 1 MT/year ethane steam cracker. This would 'act as the starting point for value chains at a new integrated site,' said BASF.
Later phases would see further downstream chemicals, possibly including diisocyanate and polyol pre-cursor materials.
BASF said the plant will be the third largest in its portfolio behind Ludwigshafen, Germany and Antwerp, Belgium.
One of the firm's reasons for choosing to site the new plant in Guangdong is the province's size: over 110 m people live there. The province has a GDP which exceeds Spain, and if it continues to grow at 7%/year it will soon be larger than South Korea, BASF said.
The comapany announced the plan after a memorandum of Understanding was signed in the presence of German chancellor, Angela Merkel and Li Keqiang, president of China's state council.