| 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.
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