News |
July 29, 2021
- Shares in Jiahua Energy Chemical Industry advanced as much as 4.1 percent
today after the Chinese chemicals firm said it will construct a third
electronics-grade sulfuric acid production facility at a cost of CNY60
million (USD9.2 million) for use by German chemicals giant BASF.Jiahua
Energy’s stock price [SHA:600273] closed up 3.11 percent at CNY8.94
(USD1.40), giving it a market valuation of CNY12.8 billion (USD1.97
billion). Earlier in the day it had reached CNY9.03.Jiahua Energy will rent
the workshops and land to BASF and will also be a key raw material supplier,
the Jiaxing, southeastern Zhejiang province said yesterday. The two parties
have already partnered on the building of two other production lines in
Jiaxing that are already in operation.BASF’s new plant should be ready by
2023 and will more than double the firm’s sulfuric acid capacity in China,
the Ludwigshafen-based company said.This move is a strategic one to secure
long-term supply of electronics-grade sulfuric acid to better serve the
country’s fast-growing semiconductor industry, said BASF Vice President Jens
Liebermann. “It will help to grow our local and international customer bases
in China,” he added.
BASF, Zhejiang Jiahua Energy Chemical Industry Co. Ltd. (“Jiahua”) and its
fully-owned subsidiary Zhejiang Jiafu New Material Technology Co. Ltd
(“Jiafu”) signed an agreement to further expand the production capacity of
electronic-grade sulfuric acid in Jiaxing, China. This double-digit
million-euro investment will more than double the company’s existing
sulfuric acid production capacity in China to serve the country’s
fast-growing semiconductor industry. The site expansion is planned to be
completed by 2023. BASF will
begin the construction of its third electronic-grade sulfuric acid (H2SO4
EG) production facility in Zhapu in 2021. Jiahua and Jiafu will provide key
raw materials to this new plant. The new construction will add extra
capacity to the existing sulfuric acid facilities in operations since 2017,
and it will be equipped with best-in-class sulfuric acid technology, which
is proven for advanced node semiconductor production. The intricate
architecture of the production process, along with the quality management
expertise implemented in the Jiaxing plant, are achieved through BASF’s
comprehensive global network of R&D and production expertise.
This investment will boost BASF’s capabilities to serve increasing
demand from the Chinese electronic materials market and provide reliable
supply to customers. “This
significant investment in Jiaxing marks a key milestone for our rapid
development and the growth of BASF’s electronic materials business in
China,” said Jens Liebermann, Vice President, Global Semiconductor Business
Electronic Materials. “It demonstrates our strong commitment to serve our
customers with locally-produced sulfuric acid of best-in-class quality,
consistency and reliability. Expanding together with our trusted partners
Jiahua and Jiafu is the logical next step to build on our successful
partnership to accelerate our growth in China. With the development of the
electronic materials market in China, this move is a strategic one to, in
the long term, secure the supply and growth of our local and international
customer bases in China. Electronic-grade sulfuric acid is one of BASF’s key
technologies serving the semiconductor industry.”
“We have seen increasing demand from the rapidly growing electronic
materials market in China,” said Dr. Zheng Daqing, Senior Vice President,
Business and Market Development Greater China, BASF. “Given the strong
momentum in the market, building a third sulfuric acid production plant in
Jiaxing is a key step in our roadmap to maintain our strong foothold in
China and to consolidate BASF’s strategic position as the supplier of
choice.”
July 28, 2021 - The company and its wholly-owned subsidiary
Zhejiang Jiafu New material Technology Co., Ltd. (referred to as "Jiafu New
Materials") and BASF High Purity Electronic Chemicals (Jiaxing) Co., Ltd.
(referred to as "BASF (Jiaxing)") signed a "Cooperation Agreement on the
third Phase of the Plant". To provide plant and supporting facilities and
raw material supply for the construction of electronic grade sulphuric acid
plant by BASF (Jiaxing). After completion, Jiafu New Materials will lease
factories and land to BASF (Jiaxing) and provide sulfur trioxide as its
production raw material. BASF (Jiaxing) electronic grade sulphuric acid
plant produces electronic grade sulfuric acid with its technology and
equipment. BASF (Jiaxing) and its affiliated companies have exclusive sales
and distribution rights.
The investment of Jiafu New Materials, a wholly-owned subsidiary, to be used
for the construction of factories and supporting facilities shall not exceed
60 million yuan. The investment
target of this project is the third phase supporting project of electronic
grade sulfuric acid (including supporting plant and supporting public works
project). At present, the company does not have the technology and capacity
to produce electronic grade sulfuric acid. This cooperation only provides
plant, raw material sulfur trioxide and supporting services for BASF
(Jiaxing). It is reported that
the BASF (Jiaxing) electronic grade sulfuric acid project is conducive to
enhance the added value of the sulfuric acid series products. The signing of
this cooperation agreement is a further in-depth cooperation between the
company and BASF (Jiaxing) on the existing basis. By combining the resources
and technical advantages of all parties, it will have a positive impact on
the future development of Jiahua Energy.
May 30, 2018 – BASF today started operations at a new
electronic-grade sulfuric acid (H2SO4) plant in
Jiaxing, China, to serve the country’s growing semiconductor manufacturing
industry. Driven by strong demand from customers, the plant has
simultaneously started its expansion phase to double the production capacity
before the completion of the facility. The expansion phase is expected to be
operational by the end of the year.
“The new electronic-grade sulfuric acid plant in China is another
step forward in our continued growth and expansion in China’s electronics
market,” said Boris Jenniches, Vice President of Business Management at BASF
Electronic Materials Asia Pacific. “China has already become one of the
largest semiconductor markets in the world and is continuing to grow. We are
excited to be a part of this momentum and will remain committed to getting
closer to our customers and providing them with fast-track ramp-up of
chemical solutions, reliable supply, and consistent quality.”
Located at the seaport town of Zhapu, Zhejiang Province, southwest of
Shanghai, the new plant is equipped with the latest technology to produce
the highest-quality sulfuric acid. This will primarily be used during
hundreds of cleaning cycles that semiconductor wafers go through in the
making of microchips designed in single-digit nodes measuring less than 10
nanometers. It houses advanced quality analysis equipment, and an analytics
lab with a dedicated cleanroom, to accommodate the future needs of
electronics customers in China.
The performance level of the sulfuric acid produced at BASF facility in
Jiaxing exceeds the standard requirements for today’s fastest,
highest-performing semiconductors, with best-in-class quality and
consistency. The intricate architecture of the production process, along
with the quality management expertise implemented in the Jiaxing plant, are
achieved through BASF’s comprehensive global network of R&D and production
expertise. As a leading
supplier of electronic materials, BASF provides a wide variety of solutions
for the electronics industry, ranging from its portfolio of specialty
chemicals that have been processed through high-purity, advanced methods, to
applications and customized solutions. |