BASF, the world’s largest chemical producer, has halted construction at two facilities in China due to slumping demand as a result of the global economic downturn, chairman Jurgen Hambrecht told Caijing. The two projects are the expansion of an ethylene plant in Nanjing, Jiangsu province, and the construction of a methylene diphenyl diisocyanate (MDI) plant in Chongqing municipality.

Hambrecht added that demand for chemicals “will not rebound this year. It may recover next year, or at the end of next year”.

BASF and Sinopec agreed in March 2008 to invest US$900m in the Nanjing project, raising annual ethylene capacity to 750,000 tons from 600,000 tons.

The US$4bn MDI plant was to have an annual capacity of 400,000 tons and was scheduled to enter operations in 2011. MDI is used to make polymers used in refrigerators and shoes.
BASF said a revised building schedule for the two projects would depend on market conditions.