Why has the BASF-YPC facility in Nanjing maintained high operational rates despite the Middle East conflict and Strait of Hormuz closure?

The BASF-YPC facility in Nanjing has maintained high operational rates because its ethylene (C2) value chain is highly diversified across multiple end-use industries—including home care, personal care, food, agriculture, plastics, solar and photovoltaic construction, and textiles—which buffered it against sector-specific disruptions caused by the Strait of Hormuz closure; additionally, its 50-50 joint venture partner Sinopec reliably supplied naphtha feedstock, enabling the cracker to run at near-maximum load even during global feedstock shortages.

What role did Sinopec play in sustaining BASF-YPC’s production amid regional supply chain stress?

Sinopec, as BASF’s 50-50 joint venture partner in BASF-YPC, ensured continuity of naphtha feedstock supply to the Nanjing facility even after the Strait of Hormuz effectively closed, with BASF senior vice president Bir Darbar Mehta stating Sinopec was 'very, very reliable' in delivering sufficient feedstock—allowing the cracker to operate at 'the highest load that we have seen' during a period when industry players were 'all scrambling for feedstocks.'

APIC '26: Diverse C2 Value Chain Keeps BASF-YPC Output High – Exec

May 29, 2026

BASF-YPC’s Nanjing facility maintains high operational rates due to its diversified ethylene value chain, mitigating impacts from the Middle East conflict. Reliable feedstock supply from Sinopec supports continued production across key sectors including plastics and agriculture.

icis

2026-05-29

APIC '26: Diverse C2 Value Chain Keeps BASF-YPC Output High – Exec

APIC '26: Diverse C2 Value Chain Keeps BASF-YPC Output High – Exec

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