LUDWIGSHAFEN (dpa-AFX) - The BASF Group will sell shares in its two joint ventures in Korla, China. The company made the announcement on Friday in Ludwigshafen, referring to recent reports of possible human rights violations. The situation in the Xinjiang region is "always part of BASF's overall assessment of its joint ventures in Korla", it said. The city of Korla is located in the center of the Xinjiang region.
"Regular due diligence measures, including internal and external audits, have not revealed any evidence of human rights violations in the two joint ventures." Nevertheless, recently published reports on the joint venture partner had contained serious allegations pointing to activities "that are not compatible with BASF's values".
Therefore, BASF will accelerate the process to divest its shares in Markor Chemical Manufacturing and Markor Meiou Chemical, which has been ongoing since the fourth quarter of 2023 - subject to negotiations and the necessary approvals from the relevant authorities.
Previously, there had been allegations that employees of a BASF partner company in the Xinjiang region were involved in a state control and repression campaign against the Muslim Uyghur minority. They are alleged to have spied on Uyghurs, as reported by ZDF and "Der Spiegel".
According to the media, 30 international parliamentarians, including MEP Reinhard Bütikofer (Greens), recently sent a letter to BASF CEO Martin Brudermüller demanding the company's withdrawal from Xinjiang. In response to the open letter, the company stated: "We take the letter very seriously, will approach the signatories promptly and make them an offer of talks." The meeting with Bütikofer took place on Friday, BASF announced.
According to BASF, it has been operating two joint ventures for the production of chemicals in Xinjiang since 2016. A total of around 120 people are employed in the two joint ventures in Korla, including around 40 at BASF Markor Chemical Manufacturing (Xinjiang) Company Limited, which is majority-owned by BASF./wo/DP/jha