BASF Finalizes Stake Sales Amidst Human Rights Concerns

BASF has sold its stakes in Markor Chemical Manufacturing to Verde Chemical, against a backdrop of human rights abuse allegations in Xinjiang. The sale aligns with BASF’s strategic divestment plans due to commercial and environmental concerns, while continuing investments in China amid high European production costs.

BASF has completed the sale of its shares in Markor Chemical Manufacturing and Markor Meiou Chemical to Verde Chemical, a firm based in Singapore, as reported by France 24. While financial details were not disclosed, the transaction was finalized on Monday following approval from relevant authorities.

The German conglomerate had signaled in February 2024 its intention to expedite divestment from joint ventures producing the industrial chemical butanediol, citing commercial and environmental concerns. These plans were initially made public in 2023, underscoring BASF's strategic shift.

Reports from ZDF and Der Spiegel highlight allegations against employees of BASF's partner company, Markor, for human rights abuses against the Uyghur minority. These employees were reportedly involved in surveillance activities that were relayed to Chinese officials.

Human rights organizations have long accused the Chinese government of oppressing minorities in Xinjiang, with allegations of forced labor and detention camps. Beijing, on the other hand, maintains that its measures are aimed at combating extremism. Despite these issues, BASF continues to boost investments in China, with a new 10 billion euro chemical complex being constructed in Guangdong province.

The systematic repression of Uyghurs in China involves forced labor, cultural erasure, and constant surveillance. Millions are detained, their properties and economic freedoms seized, facing religious persecution under the surveillance of the Chinese government, intending to assimilate them into the dominant Han Chinese culture.

(With inputs from agencies.)