Germany’s BASF to Build $10 Billion Guangdong Chemical Plant

German chemicals giant BASF SE signed a memorandum of understanding (MOU) on Monday to investigate the construction of a major chemical production complex in South China’s Guangdong province.

The new plant would be BASF’s third-biggest worldwide and would make use of its “verbund” model, which integrates the various stages of the production chain at one site. The company is betting on continued strong growth in Guangdong, where it has customers in “key industries” such as transportation and consumer goods, BASF said in a news release.