Business | Schumpeter

BASF’s plan to wean itself off cheap Russian gas comes with pitfalls

The German chemicals giant is turning towards China

There is no better place to experience German efficiency than at Ludwigshafen, a site operated by basf, the world’s largest chemicals company, an hour’s drive south of Frankfurt. Everything is joined together in this city-sized cluster of dozens of plants connected by 2,850km of twisting pipes, from two steam crackers, industrial cathedrals where a hydrocarbon mixture called naphtha is split into its components, to an immense incineration facility, where residues are put to rest. Despite the vast scale of Ludwigshafen everything is accounted for. Reuse and recycling ensure that barely a molecule is wasted. According to basf’s proud tour guide, 94% of the chemicals that enter this system make it into one of the firm’s 45,000 products.

This article appeared in the Business section of the print edition under the headline “Chemical hazard warning”

China’s slowdown

From the May 28th 2022 edition

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