BASF to divest shares in its two joint ventures in Korla, China
Accelerated divestment due to higher carbon footprint and human rights concerns
BASF SE
The situation in the Xinjiang region has always been part of BASF’s overall assessment of its joint ventures in Korla. Regular due diligence measures including internal and external audits have not found any evidence of human rights violations in the two joint ventures. Nonetheless, recently published reports related to the joint venture partner contain serious allegations that indicate activities inconsistent with BASF’s values. Consequently, BASF will accelerate the ongoing process to divest its shares in the two joint ventures in Korla, subject to negotiations and required approvals of the relevant authorities.
It is important to note that, also in the context of the public reports, BASF has no indication that employees of the two joint ventures in Korla were involved in human rights violations. The most recent reports relate to BASF’s joint venture partner, in which BASF does not have a stake.
BASF’s presence in China remains otherwise unchanged, and the company is fully committed to its business activities and planned investments in the country. Already today, Greater China accounts for around half of global chemical production. Global growth in chemical production until 2030 will be driven by Greater China, which will account for around 80% of the total growth during the period from 2022 to 2030.
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