BASF (Ludwigshafen / Germany; www.basf.com) has signed a deal with Chinese chemical firm Huafon (Ruian City, Zhejiang; www.huafeng.com) to develop polyurethane, bio-fibre and spandex markets in China. The two companies will jointly promote the growth of the polyurethane market in China, especially in the western part of the country. BASF is to supply finished PU systems and PU raw materials to local processors. The German company will develop speciality fibre and bio-content fibre for high-end apparel products with Huafon and the pair will strengthen their cooperation in spandex technology, intermediate products and industrial digitalisation. The companies will also work together to optimise their respective raw material resources.

Huafon, founded in 1991, and BASF have worked together in China for a number of years. In May 2006, Huafon received the first batch of polytetrahydrofuran, delivered from BASF’s production site in Caojing, Shanghai / China. In 2007, Huafon was recognised as BASF’s strategic partner for the spandex business, the first such agreement by BASF with a customer in China. The Chinese company, which employs around 11,000 people, claims to be the largest producer of polyurethane in China, specialising in shoe soles and imitation leather materials. Most of its 11 production facilities are based in the east of the country, and China is an important market for BASF, which claims to be the largest foreign investor in the country’s chemical sector. The German firm generated sales of EUR 7.3 bn in China last year, employing nearly 9,000 people across the country.

Last week BASF announced Q1 2018 sales down 1% at EUR 16.6 bn, the dip being blamed on negative currency effects. But EBIT gained 2% to EUR 2.6 bn. The group said this was due to a better performance by the Chemicals and Oil & Gas segments – see Plasteurope.com of 10.05.2018.