Reports of Uighur human rights abuses, BASF ends operations in Xinjiang

BASF has formally completed the sale of its equity interests in Markor Chemical Manufacturing and Markor Meiou Chemical to Verde Chemical, a Singapore-based company, according to an official company statement. The financial terms of the transaction, which was finalised after receiving regulatory approvals, remain confidential. BASF previously announced its intention to accelerate its exit from the aforementioned joint ventures in February 2024. The planned divestment was originally announced for 2023, based on economic and environmental considerations. The decision was taken following reports by German public broadcaster ZDF and the news magazine Der Spiegel, which alleged that employees of BASF’s local partner Markor were involved in human rights abuses against members of the predominantly Muslim Uighur minority, including monitoring and reporting activities. BASF has stated that it has no evidence to suggest the involvement of employees of the joint ventures themselves. Human rights organisations have consistently accused the Chinese authorities of systematic repression in Xinjiang. The Chinese government denies all allegations. Notwithstanding the review of its operations in Xinjiang, BASF is continuing with its expansion initiatives in China. The company is currently building a €10 billion ($11.5 billion) chemical complex in Guangdong province amid rising production costs in Europe.