Chongqing Should Give Full Play to the Advantages of Infrastructure and Resources to Perfect the Industrial Chain and Improve Production Ef fi ciency Interview with Gan Shangjie, Executive Board Member of BASF

□ Article/Journalist Zeng Rui Tr. by Li Hui

Chongqing Should Give Full Play to the Advantages of Infrastructure and Resources to Perfect the Industrial Chain and Improve Production Ef fi ciency Interview with Gan Shangjie, Executive Board Member of BASF

□ Article/Journalist Zeng Rui Tr. by Li Hui

BASF has invested 8 billion yuan in Changshou District to develop the world-class MDI production equipment, which is aimed to mainly support the household appliances, construction markets and other industries. Also, it is by virtue of it that BASF can help Chongqing integrate the industrial chain in these fi elds. Gan Shangjie, Executive Board Member of BASF was also invited to participate in this annual meeting, during which he has received the interview concerning BASF’s development in Chongqing, his suggestion on the future development of Chongqing, etc. with the reporter.

BASF Will Play an Active Role in Developing Chongqing Pilot Free Trade Zone

Gan Shangjie has fi rstly said that the development of BASF is closely related to the strong supports from all walks of life in Chongqing. At the same time, BASF has also witnessed the development potential of Chongqing Pilot Free Trade Zone, especially the industries on the downstream of the industry of BASF. Chongqing Pilot Free Trade Zone will attract domestic and foreign investments to further promote the development of downstream industries in Chongqing, including high-end footwear, high-end or functional fabrics, automobiles,furniture, thermal insulation and building materials, and improve the cold chain of food supply safety and the quality, etc. Gan Shangjie holds that this will create a new market for chemical products. BASF will provide more high-quality products for customers in the western region and push forward the products toward the international market by virtue of logistics network of the “Belt and Road Initiative”and Chongqing Pilot Free Trade Zone in order to take full advantage of local production capacity.

BASF Will also Further Expand Their Investment Projects in Chongqing

As for the investment projects of BASF in Chongqing, Gan Shangjie has fi rst voiced that BASF has invested about 8 billion yuan to build a world-class MDI production equipment in Changshou Economic and Technological Development Zone, which is now operated by BASF Polyurethane (Chongqing) Co., Ltd. MDI is a precursor of polyurethane, while the latter is widely applied in home appliances,construction and footwear and other industries. Since the equipment was put into use in August 2015, the production capacity has been steadily improved, and the high-quality MDI products have met the daily growing market demands. Thanks to Chongqing’s unique strategic location, we are able to better serve our customers in the western region and support their development. At the same time,BASF also continue to invest in improving the techniques so as to enrich the MDI product speci fi cations, extend the product life cycle,expand the application scope and innovate more modes to meet the higher demands of customers.

Gan Shangjie has also expressed that the in-depth development of China’s western development strategy and the national strategy of the “Belt and Road Initiative” has brought many opportunities to Chongqing, while BASF will be always involved in the progress. In addition to some direct investment in MDI production, BASF has also established a wide range of business networks in Chongqing to serve the customers in the western market and boost the business.As the largest supplier of chemical products in the global automotive industry, BASF is an important partner for the car manufacturers and has established relationships with Chongqing vehicle and parts suppliers, such as Changan Ford, Changan Group, Faurecia and Lear, etc. and provided customers with a comprehensive range of products, such as emission control catalysts, Cellasto for shock absorber systems, brake fluid for brake systems, engineering plastics and polyurethane for automotive power systems, chassis,components, as well as interior and exterior decoration, automotive re fi nish systems and resin and coating systems for the wind power industry. In addition, BASF also has provided lubricants and coolant products for the leading motorcycles in Chongqing.

Suggestion on Chongqing Forging World-class Industrial Chain

Gan Shangjie has also put forward his own proposals concerning the development of Chongqing Pilot Free Trade Zone in this forum,and he believes that the “Belt and Road Initiative” has brought so many great opportunities to Chongqing and all the enterprises investing in the western region in China. The living standards of the local people have been rapidly improved with the acceleration of the urbanization process and the broad prospects brought by the opening of the Chongqing-Sinkiang-Europe International Railway,which has resulted in huge demands of high-quality food, housing,transportation, clean drinking water and air. Surely, this condition breeds important development opportunities for the western region.Chongqing has already become an important production hub for many industries, while the industrial value chain is still incomplete.For example, although the local automobile industry is quite large and expanding, some important parts suppliers have not entered Chongqing with the OEMs (original equipment manufacturer). He says “it is our common vision to create a world-class industrial chain”.Thus, Chongqing should invest in building a world-class downstream industry so as to achieve this goal. In particular, industrial areas integration is an effective method to increase productivity. Therefore,it is necessary for Chongqing to attract the second-tier, the thirdtier and the forth-tier enterprises to settle in the local and make the advantages of raw materials to expand the existing value chain of the upstream and downstream industries at the same time. Of course, the opportunities facing Chongqing are not limited to the “Belt and Road Initiative”. More importantly, Chongqing should seize the opportunity to build itself into a world-class production core to meet the local huge market demand.