BASF to Exit Two Xinjiang Joint Ventures on Human-Rights Concerns — Update

By Helena Smolak

BASF plans to sell its shares in two joint ventures in China's Xinjiang region, citing allegations against its partner that the German company deemed inconsistent with company values.

The move comes after reports in the German media about human rights abuse of Uyghur people that prompted calls on BASF to exit Xinjiang.

The German chemicals giant said Friday that it doesn't have indications that employees of the two joint ventures, located in Korla, were involved in the alleged human-rights violations.

"Nonetheless, recently published reports related to the joint venture partner contain serious allegations that indicate activities inconsistent with BASF's values," it said.

BASF said the allegations relate to its joint-venture partner, Xinjiang Markor Chemical Industry, in which it doesn't have a stake.

The Chinese company didn't immediately respond to a request for comment outside of business hours in China.

China's Embassy in Germany didn't immediately respond to a request for comment.

The Inter-Parliamentary Alliance on China, a coalition of developed-world lawmakers, urged BASF to withdraw from the region in a letter dated Monday.

BASF said it would accelerate a process to sell its shares in the two joint ventures, BASF Markor Chemical Manufacturing (Xinjiang) and Markor Meiou Chemical (Xinjiang), subject to negotiations and required approvals of the relevant authorities.

BASF said its presence in China remains otherwise unchanged.

Write to Helena Smolak at helena.smolak@wsj.com

(END) Dow Jones Newswires

February 09, 2024 09:30 ET (14:30 GMT)

Copyright (c) 2024 Dow Jones & Company, Inc.