BASF & Sinopec Form 50-50 JV to Build Isononanol Plant in China to Meet Growing Demand of Plasticizers

Shanghai, China -- BASF and China Petroleum & Chemical Corporation ("Sinopec" ) broke ground on the construction of its world-scale isononanol (INA) plant in Maoming Hi-tech Industrial Development Zone, Maoming, China. At start-up in 2015, the plant, which is the first of its kind in China, will serve the increasing market demand for next-generation plasticizers. A newly-formed 50-50 joint venture company has been created, BASF MPCC Company Limited. The new plant will bring around 100 new jobs in Maoming.

"High quality and reliable plasticizers help underpin industrial growth, and with this plant we will be well positioned to serve China s growing demands. Additionally, this project brings us a step closer to BASF s strategic goal to better serve local industries with local production in Asia Pacific of approximately 75% by 2020. The new joint venture with Sinopec also solidifies our already strong partnership, and demonstrates BASF s long-term commitment to China," said Dr. Albert Heuser, President, Functions Asia Pacific, President and Chairman, Greater China, BASF.

"This project is the first of its kind to bring BASF s advanced INA technology into China, and to build a world-scale INA plant at Maoming Hi-tech Industrial Development Zone. It not only fills the countrys INA production gap, but also opens a new chapter for the strategic alliance between SINOPEC and BASF. It closely unites two strong parties, in order to enjoy mutual benefits and develop business together, taking our relationship to a new level. I hope both shareholders continue to broaden our co-operation, and to explore how to further utilize SINOPEC Maoming, this area s refinery products, and the public infrastructure, so as to maximize the production of BASF MPCC Company Limited and both shareholders business interests," said Dr. Yu Xizhi, President of SINOPEC Corp. Maoming Company.

INA is used as the feedstock for the production of next generation plasticizers, including diisononyl phthalate (DINP) and non-phthalate plasticizer Hexamoll DINCH. DINP is widely used as a plasticizer in industrial applications such as automotive, wires, building and construction, while Hexamoll DINCH is BASF s non-phthalate plasticizer for sensitive applications, including toys as well as food contact and medical applications.

BASF and Sinopec have longtime partnership and jointly operate BASF-YPC Co. Ltd., a 50-50 joint venture formed in 2000 between BASF and Sinopec in Nanjing, China.

About SINOPEC

China Petroleum & Chemical Corporation (" Sinopec" ) is a large scale integrated energy and chemical company with upstream, midstream and downstream operations. Its principal business includes: exploring, developing, producing and trading crude oil and natural gas; producing, storing, transporting and distributing and marketing petroleum products, petrochemical products, synthetic fiber, fertilizer and other chemical products. Sinopec is China s largest manufacturer and supplier of petroleum products and major petrochemical products. It is the second largest producer of crude oil in Asia. Its refining capacity and ethylene capacity rank No. 2 and No. 4 globally. The Company has 30,000 sales and distribution ne