On 9 January 2019, BASF and the Guangdong provincial government signed a framework agreement setting out further details of the company’s plan to establish a new Verbund site in Guangdong, China. Following the signing of the Memorandum of Understanding in July 2018, the company has selected the city of Zhanjiang as the location for its second Verbund site in China. The total investment is estimated to reach up to USD 10 billion and will be implemented in phases. The project will include a wholly-owned steam cracker with a planned capacity of 1 million t of ethylene per year and several plants for consumer-oriented products and solutions. Around 9 km2 of land will be allocated for the project.