Aroma Ingredients BASF and Petronas to Build Integrated Aroma Ingredients Complex in Malaysia

Editor: Dr. Jörg Kempf

BASF and Petronas Chemicals Group Berhad (PCG) intend to invest US$ 500 million in an integrated aroma ingredients project at their existing joint venture site BASF Petronas Chemicals in Gebeng, Kuantan. With this investment, the partners will help meet the globally growing demands of customers in the flavor and fragrance industry, especially in Asia Pacific.

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Fresh taste and cooling effect: the world’s most-sold flavor menthol can be found in countless everyday products.
Fresh taste and cooling effect: the world’s most-sold flavor menthol can be found in countless everyday products.
(Picture: BASF)

Kuala Lumpur/Malaysia, Hong Kong – At the heart of the complex will be a plant for citral and precursor plants. The partners will also invest in downstream production for aroma ingredients including a new world-scale plant for L-menthol and a plant for citronellol. Production will be developed in phases, with the first plants of the project operational in 2016, creating some 110 new employment opportunities.

“This investment is built on the solid, long-term relationship with our strategic partner PCG. Since the establishment of our joint venture, BASF and PCG have successfully served the needs of the region with high-quality and innovative products,” said Dr. Martin Brudermüller, Vice Chairman of the Board of Executive Directors of BASF, responsible for Asia Pacific.

“With this strategic investment we are increasing our contribution to the aroma ingredients market to bring attractive fragrances and flavors to our daily lives. Embedding this investment into our Kuantan Verbund allows our customers to benefit from a global production network for their future growth plans in the Asia Pacific region,” said Saori Dubourg, President Asia Pacific BASF.

“The integrated aroma chemicals complex will open up a new business frontier for PCG, tapping into the flavors, fragrance and pharmaceuticals markets. This indeed presents exciting prospects for the company, as we endeavor to provide innovative customer solutions,” said Datuk Wan Zulkiflee Wan Ariffin, Chairman of Petronas Chemicals Group Berhad.

“The Gebeng expansion adds further value creation to our existing product streams and we are strengthening the joint venture by leveraging on our strategic partner’s technology and expertise in the aroma ingredients,” said Dr. Abd Hapiz Abdullah, President/Chief Executive Officer of PCG.

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