BASF exits domestic joint venture; CNPC takes full control! Amid a wave of strategic divestments and streamlining, what is this global chemical giant really planning?

Recently, BASF—the global chemical giant—announced its exit from its joint venture with China National Petroleum Corporation (CNPC) in Jilin Province, sparking widespread attention across the chemical industry. According to ZhuanSu ShiJie (Specialized Plastics World), on June 28, BASF Jilin New Pentanediol Co., Ltd. completed a major equity restructuring: BASF (China) Ltd. and BASF SE—the two foreign shareholders—fully withdrew, and PetroChina Company Limited became the sole controlling shareholder. Thus, this three-decade-long Sino-foreign joint venture officially came to an end. This equity withdrawal is no isolated event. From shutting down its EPS facility in South Korea to selling its coatings business, from cost-saving initiatives to launching its CoreShift transformation program, BASF rolled out a tightly packed series of strategic moves between May and June 2026—forming a cohesive 'strategic combo' that reveals the company’s decisive response to dramatic shifts in the industry cycle, and reflects broader transformations underway across the global chemical sector. The End of a Thirty-Year Partnership: BASF Jilin From 'Joint Venture' to 'State-Owned Sole Proprietorship' BASF Jilin New Pentanediol Co., Ltd. was a landmark early foreign-investment project in Northeast China’s chemical industry. Established in November 1995 in Jilin City, Jilin Province, the company was jointly founded by BASF and Jilin Chemical Industry Co., Ltd. (later integrated into PetroChina Company Limited), with BASF holding a 60% stake and the Chinese side 40%. Its production facility commenced operations in May 1998 and became one of China’s earliest large-scale producers of neopentyl glycol (NPG), with an annual capacity of 35,000 tons—once making it China’s largest NPG producer. As a key fine chemical intermediate, NPG exhibits excellent chemical and thermal stability. Approximately 70% of its output is used in polyester resins for powder coatings and coil coatings; it is also employed in unsaturated polyesters, pharmaceutical intermediates, and plastic modification materials—underscoring its strategic importance in the industry. Over three decades of operation, BASF Jilin not only stabilized the fine chemical market landscape in North China but also served as a core vehicle for BASF’s early market entry and its efforts to complete its fine-intermediate industrial chain in China. According to the latest information, the equity acquisition agreement was finalized in May 2026, and the relevant industrial and commercial registration changes were approved by the Jilin Provincial Market Supervision Administration on June 17, 2026. Prior to the change, BASF (China) Ltd. and BASF SE jointly held 60% of the equity. Following the change, these two foreign shareholders exited entirely, and their RMB 90 million subscribed capital contribution was fully assumed by PetroChina. The company’s registered capital was reduced from RMB 150 million to RMB 60 million. Consequently, BASF Jilin formally transitioned from a foreign-invested enterprise to a state-owned sole proprietorship enterprise. Source: TianYanCha Regarding this equity transfer and withdrawal, BASF stated that, in recent years, domestic NPG production capacity has expanded rapidly, triggering drastic changes in market competition. Due to constraints in its industrial chain layout—and lacking integrated upstream-downstream support—the BASF Jilin facility has faced persistent pressure on long-term operational competitiveness. Therefore, BASF and Jilin Petrochemical made this decision following continuous strategic production layout assessments, aiming to ensure competitiveness amid evolving market conditions.

Latest ranking of nylon brands: Top Ten Polyamide (Nylon) Brands (Maigoo)

The Top Ten Nylon Brands include INVISTA, BASF, Pingmei Shenma, Hengshen (HSCC), Yongrong Holdings, Ascend Performance Materials, Huading Nylon, Taihua New Materials, Huafon, and Meida. This list is presented in no particular order and is provided solely for reference. The Top Ten Nylon Brands list was compiled through voluntary applications submitted free of charge by enterprises, along with data collection and collation conducted by the CN10 Ranking Research Department and the CNPP Brand Big Data Research Department. It was derived using big-data analytics, cloud computing, artificial intelligence, online voting and likes, plus expert analysis and professional evaluation based on market dynamics and parameter changes—ensuring authenticity, objectivity, and fairness. 1. INVISTA Affiliated Company: INVISTA Nylon Chemicals (China) Co., Ltd. Brand Introduction: Originally the fibers and interiors division of DuPont, INVISTA was acquired by Koch Industries in 2004. It is a world-leading integrated fiber and polymer company, a leader in nylon intermediates and polymer resins, and one of the largest global producers of polyamide 66 polymers. INVISTA operates factories and subsidiaries worldwide, including facilities in Shanghai for adiponitrile, hexamethylenediamine, and nylon 66 polymer production. 2. BASF Affiliated Company: BASF (China) Ltd. Brand Introduction: A German chemical giant and one of the world’s largest integrated chemical companies, BASF operates over 20 major wholly owned subsidiaries in Greater China. Its product portfolio spans chemicals, materials, industrial solutions, surface treatment technologies, nutrition & care, and agricultural solutions. Leveraging technological excellence and craftsmanship, BASF has become a globally recognized enterprise in eco-friendly latexes and auxiliaries. 3. Pingmei Shenma Affiliated Company: China Pingmei Shenma Holding Group Co., Ltd. Brand Introduction: Formed through the merger of the former Pingmei Group and the former Shenma Group, Pingmei Shenma Group has established three distinctive industrial chains—coal-based nylon chemicals, carbon materials, and silicon materials plus hydrogen energy—covering coal coking, nylon chemicals, and new energy & materials. It has independently developed over 300 products—including high-strength, ultra-low-shrinkage, medium-to-fine-denier nylon 66 industrial yarn and aramid-reinforced nylon composite dipped cord fabric—and ranks among the industry leaders in nylon 66 industrial yarn, engineering plastics, nylon 66 salt, and nylon 66 chips. 4. Hengshen (HSCC) Affiliated Company: Hengshen Holding Group Co., Ltd. Brand Introduction: Founded in 1984, Hengshen Group is an advanced manufacturing conglomerate integrating chemical, synthetic fiber, and new material industries. Its portfolio includes over ten entities such as Shenyuan New Materials, Hengshen Synthetic Fiber, Fortis Chemicals Netherlands, Nanjing Fortis Chemicals, and Hesheng Gases. It pioneered the world’s first complete eight-step nylon 6 industrial chain—from cyclohexanone → caprolactam → polyamide → nylon 6 spinning → nylon 6 texturing → warping → weaving → dyeing and finishing—operating across more than 30 countries and regions. 5. Yongrong Holdings Affiliated Company: Fujian Yongrong Jinjiang Co., Ltd. Brand Introduction: Established in 2006, Yongrong Holdings is a large high-tech enterprise integrating chemical, synthetic fiber, and new material industries. Committed to delivering high-quality nylon products and services, it has vertically integrated its entire upstream-downstream value chain—from benzene → caprolactam → nylon chips → nylon fiber. Its core businesses cover caprolactam, nylon polymer chips, and nylon fiber. Its sales network serves major domestic and international markets, and its products are exported to over a dozen countries and regions across Southeast Asia, Europe, and the Americas.

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