BASF and Sinopec have signed a memorandum of understanding (MoU), which includes, among other things, plans for a joint pre-feasibility study on a second ethylene cracker in Nanjing, China. According to the MoU, the parties' existing BASF-YPC joint venture will invest in a 50% stake to build the steam cracker, which will have a capacity of 1 mta of ethylene.  Sinopec Yangtzi Petrochemical (YPC) will hold the remaining 50% stake.  Both BASF-YPC and YPC will have access to all of the products of the steam cracker. The new cracker will also enable the companies to expand production capacity at their BASF-YPC integrated Verbund site in Nanjing.