German chemicals group BASF signed a long-awaited agreement yesterday to submit a feasibility study for the development of a US$3.1 billion (HK$23.9 billion) petrochemical plant in Nanjing. The deal is a key phase in the eventual establishment of a plant producing 600,000 tonnes per year of ethylene. The project is being undertaken through a joint venture with China Petrochemical Corporation, and follows a landmark deal last month to allow BP Amoco to conduct a feasibility study into a similar US$2.5 billion ethylene complex in Shanghai. Several other Sino-foreign projects are also awaiting approval, after being put on hold following the Asian financial crisis, and the collapse of mainland domestic demand.
