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Exhibit 99.6
NEWS RELEASE
September 28, 2001
Diana Weitenkopf
P 342e
Tel. +49 6 21/60-2 07 32
Fax +49 6 21/60-9 26 93
diana.weitenkopf@basf-ag.de
LARGEST SINO-GERMAN CHEMICAL JOINT VENTURE KICKS-OFF
BASF-YPC BREAKS GROUND FOR A WORLD-SCALE INTEGRATED PETROCHEMICAL SITE IN
NANJING
NANJING, CHINA / SEPTEMBER 28, 2001 - BASF-YPC Company Ltd., a 50-50 joint
venture company between BASF and SINOPEC, today celebrated the ground
breaking for its world-scale integrated petrochemical production site in
Nanjing.
At the ceremony were Mr. Chen Jinhua, the Vice Chairman of National Committee
of the Chinese People's Political Consultative Conference (CPPCC); Mr. Sheng
Huaren, member of the Standing Committee of the National People's Congress
(NPC); Mr. Hui Liangyu, Party Secretary of Jiangsu Province; Mr. Ji Yunshi,
Governor of Jiangsu Province; Mr. Wang Wulong, Party Secretary of Nanjing;
Mr. Wang Hongmin, Mayor of Nanjing; Mr. Joachim Broudre-Groger, German
Ambassador; Dr. Juergen F. Strube, Chairman of the Board of Executive
Directors of BASF, Mr. Helmut Becks, Member of Board of Executive Directors
of BASF; and Mr. Li Yizhong, Chairman of SINOPEC.
Using state-of-the-art technology, BASF-YPC will build and operate a
steamcracker (600,000 metric tons ethylene per year) and nine downstream
plants on its 220 hectare site on the Yangze River. With a total investment
of US$2.9 billion (including utilities), BASF-YPC is currently the largest
chemical Sino-German joint venture in China.
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Apart from the steamcracker, the project includes the following plants:
* Low density polyethylenes 400,000 mt/y
* Ethylene glycols 300,000 mt/y
* Acrylic Acid 160,000 mt/y
* Acrylates 215,000 mt/y
* C4 oxo alcohols 250,000 mt/y
* Formic Acid 50,000 mt/y
* Propionic Acid 30,000 mt/y
* Methylamines 30,000 mt/y
* Dimethylformamide 30,000 mt/y
The new Verbund site is expected to begin commercial operations in 2005 and
will produce about 1.7 million metric tons of high quality chemicals and
polymers per year to serve the domestic market. The partners are convinced
that BASF-YPC will be highly competitive in the marketplace and help boost
the economic development of Eastern China, especially Jiangsu province.
At the groundbreaking ceremony, Mr. Li Yizhong, Chairman of SINOPEC said, "I
am sure this project will greatly improve the supply-demand situation of raw
materials for China's chemical industry in the coming years. It will also
help to consolidate our position in the domestic chemical market, and enhance
the competitiveness of SINOPEC."
Dr. Strube, Chairman of BASF said, "This project is visible proof of the
excellent partnership between BASF and SINOPEC. The new plants to be located
here will constitute BASF's largest investment in Asia. This shows the
important role China will play in our strategy. By 2010 we plan to obtain a
significant proportion of sales from China."
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In 1995, BASF and SINOPEC began their negotiations to establish an integrated
petrochemical site. In March 1996, both parties signed a Letter of Intent.
The Chinese government approved the project proposal and the Joint
Feasibility Study in December 1997 and June 2000 respectively. BASF was the
first foreign chemical company to receive approval for such a production site
in China. The business license was awarded to the joint venture in December
2000. BASF-YPC is the first strategic joint venture project finalized by
SINOPEC, with an international company, after its successful IPO in October
2000 on the stock markets of New York, London and Hong Kong.
ABOUT BASF
BASF is a transnational chemical company that aims to increase and sustain
its corporate value through growth and innovation. The company's product
range includes high-quality chemicals, plastics, colorants and pigments,
dispersions, automotive and industrial coating, agricultural products and
fine chemicals as well as crude oil and natural gas. BASF's approach to
integration, known in German as "Verbund", is one of its particular
strengths, ensuring cost leadership and a unique competitive advantage. With
sales of about E 36 billion (circa US$34 billion), BASF acts in accordance
with the principles of Sustainable Development. BASF shares are traded on
stock exchanges in Frankfurt (BAS), London (BFA), Zurich (BAS), Paris (BA)
and New York (BF). The Company's internet address is www.basf.com.
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ABOUT SINOPEC
SINOPEC is the largest integrated petroleum and petrochemical company in
China. The shares of SINOPEC were issued in New York, Hong Kong and London
simultaneously in October 2000 and in Shanghai in July 2001. The company's
businesses include oil and gas exploration, development, production and
selling, crude oil processing, oil products trading, transportation,
distribution, petrochemical production and distribution. In 2000, the
turnover and other operating revenues of SINOPEC was about US$39.6 billion
(RMB328.9 billion). SINOPEC will further improve its competitiveness, and
return on its capital employed, through the implementation of cost reduction,
resource optimization , human resource strategies, and technology. YPC, with
an annual output amounting to 5 million metric tons, is a key subsidiary, and
one of SINOPEC's largest ethylene bases. SINOPEC aims to be a world-scale
petrochemical and energy company with international competitiveness. SINOPECs
internet address is www.sinopec.com.
Photos of Asia can be found in the Internet under: http://www.basf.de/asia-tour