BASF Petronas Chemicals to build new plant at existing site in Kuantan

PETALING JAYA: Petronas Chemicals Group Bhd (PCG) and BASF will jointly build a new world-scale production plant for highly reactive polyisobutene (HR-PIB) at the site of their existing joint venture (JV) in Kuantan, Pahang.
The plant will have a total annual capacity of 50,000 tonnes of HR-PIB and is expected to start production in the fourth quarter of 2017.
HR-PIB is an intermediate product for the manufacturing of high performance fuel and lubricant additives, including additives for sludge prevention.
"Leveraging excellence in technology will be an important factor in accelerating future profitable growth globally and especially in Asia. With this investment, we are building on the solid, long-term relationship with our strategic partner Petronas," said BASF Performance Chemicals division president Dr. Christian Fischer. The JV, BASF Petronas Chemicals Sdn Bhd, has an integrated site in Kuantan. It is one of BASF's two Verbund sites in the Asia Pacific region.
According to Fischer, the joint investment with BASF's partner PCG at the Kuantan Verbund site will further increase security of supply for HR-PIB, especially for the Asian market. The new plant will further strengthen the global footprint of BASF as the leading supplier of this product.
"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. It also strengthens the presence of highly advanced and forward oriented technologies and expertise in Malaysia and the region," said PCG president and CEO Datuk Sazali Hamzah.
BASF has over 70 years of experience in the manufacturing of HR-PIB. Besides the new plant in Asia, it operates production facilities for HR-PIB at its Verbund sites in Ludwigshafen, Germany and Antwerp, Belgium, and within a JV with Sinopec YPC in Nanjing, China.
BASF and PCG founded their JV in 1997, which operates an integrated complex situated at the Gebeng Industrial Zone in Kuantan.
In addition to the proposed plant, it 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; 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.