BASF further expands its long-standing partnership Petronas. The companies want to build World-scale plant for highly reactive polyisobutene at Kuantan/Malaysia.
Ludwigshafen/Germany, Kuantan/Malaysia – BASF und Petronas Chemicals Group Berhad (PCG) plan to build a new world-scale production plant for highly reactive polyisobutene (HR-PIB) at the site of their existing joint venture, BASF Petronas Chemicals, in Kuantan/Malaysia. The plant with a total annual capacity of 50,000 metric tons of HR-PIB, is expected to start production in the fourth quarter of 2017. According to the companies this plant will be the first of its kind in South East Asia.
HR-PIB is an important intermediate product for the manufacturing of high performance fuel and lubricant additives, including additives for sludge prevention. Besides the new plant in Asia, the company operates production facilities for HR-PIB at its Verbund sites in Ludwigshafen/Germany and Antwerp/Belgium, and within a joint venture with Sinopec YPC in Nanjing, China.
In addition to the proposed plant, BASF Petronas Chemicals is also building two plants at its Kuantan site namely an integrated aroma ingredients complex for the manufacturing of citronellol, L-menthol as well as citral and its precursors which are widely used in the flavour and fragrance industry; and a 2-ethylhexanoic acid (2-EHA) production plant for the manufacturing of 2-EHA compound for the production of synthetic lubricants as well as oil additives. It is also used for functional fluids like automotive coolants, metal salts for paint dryers, plasticizers, stabilizers, catalysts and other applications in various industries.
“With this investment, we are building on the solid, long-term relationship with our strategic partner Petronas”, said Dr. Christian Fischer, President of BASF’s Performance Chemicals division. Datuk Sazali bin Hamzah, President and Chief Executive Officer of Petronas Chemicals Group Berhad added: “The investment marks another significant milestone in the development of the Kuantan site as a leading specialty chemicals hub in the Asia Pacific region, in line with PCG’s strategy to diversify into specialty chemicals and solutions.”