BASF Petronas to Build Plant in Malaysia
BASF PETRONAS Chemicals Sdn. Bhd., a joint venture between BASF AG, Germany, and the Malaysian state-owned company Petroliam Nasional Berhad (Petronas), will build a butanediol plant in Malaysia. The plant will have an annual capacity of 100,000 metric tons and will use butane as a feedstock. It will be built in Gebeng (Pahang), which is close to the port of Kuantan, and be on-line in 2002.
The new plant will represent a significant expansion of activities in the joint venture, which was formed in August 1997. BASF holds a 60 percent stake and Petronas 40 percent in the joint venture.
"This latest initiative shows the determination of the joint venture to develop the Gebeng site into a world-class fully integrated chemical site," said Dr. Bernhard Nick, Managing Director of BASF Petronas Chemicals.
YBhg Tan Sri Dato Mohd Hassan Marican, president of Petronas said: "The construction of the butanediol plant is very timely, and reinforces the long-term commitment of the joint venture partners to make Malaysia an important manufacturing base (in this region) for the chemical market."
"The project is a tremendous boost for Malaysia, and reflects BASF's confidence and continued commitment in this country," he added.
Two other major projects are already under construction at the site at Gebeng. Part of the first project being developed is an acrylic acid plant that has an annual capacity of 160,000 metric tons of crude acrylic acid. In an additional plant under construction, the crude acrylic acid will in turn be used to produce 100,000 metric tons of butyl acrylate, 60,000 metric tons of 2-ethylhexyl acrylate and 20, 000 metric tons of glacial acrylic acid. These plants will begin operations in 2000.
The second project to be completed by the end of 2000 is an oxo alcohols, phthalic anhydride and plasticizers complex. It will produce 80,000 metric tons of 2-ethylhexanol, 135,000 metric tons of n-butanol, 40,000 metric tons of phthalic anhydride and 100,000 metric tons of plasticizers per year. Total capital expenditures for these projects, including the butanediol plant, which form the basis for the development of a BASF Verbund site in Malaysia, is estimated at $900 million.
BASF is the world's largest producer of butanediol and currently has a total capacity of 310,000 metric tons per year. From year 2000, this will increase to 400,000 metric tons with the expected completion of the plant in Ulsan, Korea, and the capacity expansion at BASF's other existing plants in Ludwigshafen, Germany, and Geismar, LA .
Commenting on the market demand for butanediol, Dr. Dietrich Lach, president of BASF's Intermediates Division, said: "Global demand for butanediol is expected to increase, and with the additional plant in Gebeng, BASF will be ready to support the needs of our customers in Asia and beyond."
Butanediol is used mainly to produce polyurethanes and polybutylene terephthalates. Other important derivatives are polytetrahydrofuran, a precursor for elastic fibers, and Gamma-butyrolactone, the precursor of the solvent N-methylpyrrolidone, as well as polyvinylpyrrolidone, a specialty polymer for pharmaceutical and cosmetics applications.