The BASF-YPC plant in Nanjing, a city in eastern China, has maintained high operating rates since the outbreak of the Middle East conflict in March due to its highly diversified ethylene (C2) value chain. Bir Darbar Mehta, Senior Vice President of Petrochemicals for Asia Pacific at BASF, stated at the 2026 Asian Petrochemical Industry Conference (APIC) that this diversification strategy allows the plant to maintain stable production by relying on industries less affected by the closure of the Strait of Hormuz.
The C2 value chain at BASF's integrated Nanjing site serves multiple industries, including home and personal care, food, agriculture, plastics, solar and photovoltaic buildings, and textiles. This broad industry coverage helps the company manage the portfolio cyclical risks common in the C2 value chain. Products manufactured along this value chain include monoethylene glycol, refined ethylene oxide, ethylene glycol, ethanolamine, low-density polyethylene, and ethylene-vinyl acetate.
Mehta added that this broad industry coverage allows the Nanjing plant to maintain high production levels while remaining competitive and reliable. Furthermore, the Yangzi Petrochemical-BASF plant—a 50/50 joint venture between BASF and Chinese state-owned giant Sinopec—continues to receive naphtha from Sinopec even after the Strait of Hormuz was effectively closed. Mehta stated that Sinopec has been very reliable in providing sufficient feedstock, including operating the cracking unit at near-record high capacity several months ago when feedstock competition was fierce.
