New Plant by Petronas Chemicals and BASF

Published By : 24 Feb 2015 | Published By : QYRESEARCH

Petronas Chemical Group Bhd has made a deal with BASF, the German chemical producer to collaborate on the production plant for 2-Ethylhexanoic Acid. The chemical production will begin at the site of their current joint venture at Kuantan, Pahag.

The new plant is expected to begin processes in Q4 of 2016. The plant’s total annual capacity will be of 30,000 metric tons of 2-EHAcid. The site’s construction will begin in Q2 of 2015.

In a joint statement made by BASF and PCG, it was said that the plant will avail the advantages of backward integration into the site. This will allow high levels of reliability in delivery and maximizing the utility of feedstock and energy.

CEO and President of PCG, Datuk Sazali Hamzah, said that through this project, BASF and Petronas will use their collaborative efforts in their areas of skill resources, overall molecules integration, and technology. The move will allow for optimizing value chains even further.

BASF Intermediates division’s President Stefan Blank added that in the new plant, his company can reply to the growing customer demands in the Asia Pacific region. The extra capacity at BASF will thus become one of the more prominent suppliers for 2-EHAcid of the highest purity in the region.

The acid is an intermediate that is used as a compound in the manufacture of synthetic lubricants along with oil additives.

BASF Petronas Chemicals, the joint venture, is also creating an integrated aroma ingredients complex at its Kuantan site, where it will produce L-menthol, Citronellol, and Citral along with its precursors. All these chemicals are widely used in the flavor and fragrance industry.
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