BASF, one of the world’s leading chemical companies, has announced that it will invest in a new citral plant at its site in Zhanjiang, Guangdong province, along with menthol and linalool plants at its Ludwigshafen site in Germany. The new facilities are expected to come online from 2026, according to a recent news release.
Driven by growing demand in the global flavor and fragrance market, as well as BASF’s commitment to sustainability, the investment will expand and diversify the company’s aroma ingredient value chain footprint in Germany and Malaysia. It will also support the growth opportunities of its customers.
With the investment, BASF’s annual citral output will increase to 118,000 metric tons, further strengthening the company’s position in key growth regions and increasing the production of a broad range of aroma ingredients and downstream products globally.
Thilo Bischoff, Senior Vice President of BASF Aroma Ingredients, stated that “the expansion of our global production network benefits our customers in the flavor and fragrance industry by further strengthening supply security. Investing in Zhanjiang is also a significant step toward sustainable production and addressing our customers’ demands for products with a lower carbon footprint.”
The company aims to power the entire Zhanjiang site with renewable electricity by 2025, accelerating its plan to achieve 100% renewable energy. BASF also plans to implement advanced automation and process technologies to optimize plant operations at the site, reducing energy consumption and emissions.
The BASF Zhanjiang Verbund site is set to be a role model for sustainable production, said Bischoff, and the investment in the new citral plant is a key decision factor in its location. BASF’s commitment to sustainable production and supply chain resilience will enable it to meet the growing demand for aroma ingredients and support its customers’ growth opportunities.