Sector News

BASF PETRONAS Chemicals starts up new Malaysia specialty units

April 18, 2018
Chemical Value Chain

BASF PETRONAS Chemicals has recently started up new production units in Kuantan, Malaysia, which are part of its second wave of specialty chemical investments at the Gebeng site, a senior company executive said.

Over the last couple of months, the company has started up facilities producing citral and its precursors at the Gebeng site, BASF PETRONAS Chemicals managing director Sven Crone told ICIS.

The company has also started producing and shipping out to customers its first volumes of citronellol at the Gebeng site, Crone said.

The citral and citronellol facilities are part of the aroma ingredients complex, which will start up in phases, he said.

The complex also houses a downstream L-menthol unit.

The manufactured chemicals from the complex are mainly used in home and personal care products and fine fragrances, as well as in the food and pharmaceutical industries.

Separately, BASF PETRONAS Chemicals in January this year successfully concluded the start-up of its 50,000 tonne/year highly reactive polyisobutene (HR-PIB) plant at the Gebeng site, Crone said.

“The first on-spec product has been successfully manufactured and dispatched to our customers,” he said, adding that the plant’s run rate will be increased “continuously”.

Crone said that the company expects demand growth for its products, like most chemicals, to be “above GDP” this year.

“We are looking at healthy GDP growth of 6-7% for our home markets in south Asia and ASEAN,” he said.

The company is confident about its product portfolio and offering to its customers following the addition of its new specialty products from Gebeng, Crone said.

“These additions are on top of our existing portfolio of products which have enjoyed a solid performance in 2017. Going forward we are expecting a stable to firm business environment for these products,” he said.

In China, the company expects continued strong demand growth for chemical products “even if [the] economy will slow down slightly”, Crone said.

“At the same time, we expect some streamlining of the supply in China. Overall, we expect China to continue being a growth driver for the region,” he said.

Crone added while there is no immediate plans for a third wave of investment at its Gebeng site, it is “well suited for future investment opportunities”.

German chemicals major BASF holds a 60% stake in BASF PETRONAS Chemicals, while Malaysian state-owned producer PETRONAS Chemicals Group (PCG) owns the remaining 40%.

By Nurluqman Suratman

Source: ICIS News

comments closed

Related News

October 2, 2022

DuPont’s acquisition of Rogers delayed by Chinese regulators

Chemical Value Chain

DuPont’s $5.2 billion acquisition of engineered materials producer Rogers Corporation, originally expected to close during the third quarter of 2022, still awaits regulatory approval from China’s State Administration for Market Regulation (SAMR), the two companies announced on 30 September.

September 25, 2022

France and Sweden both launch ‘first of a kind’ hydrogen facilities

Chemical Value Chain

France has launched an offshore green hydrogen production platform at the country’s Port of Saint-Nazaire this week, along with its first offshore wind farm. The hydrogen plant, which its operators say is the world’s first facility of its type, coincides with the launch of another “first of its kind” facility in Sweden dedicated to storing hydrogen in an underground lined rock cavern (LRC).

September 25, 2022

NextChem announces €194-million grant for waste-to-hydrogen project in Rome

Chemical Value Chain

The project sets up the Hydrogen Valley in Rome, the first industrial-scale technological hub for the development of the national supply chain for the production, transport, storage and use of hydrogen for the decarbonization of industrial processes and for sustainable mobility.