BASF, Petronas break ground on plant in Kuantan

KUANTAN: Pahang Menteri Besar Datuk Seri Adnan Yaakob had on Thursday officiated at the ground-breaking of a 2-Ethylhexanoic Acid (2-EHAcid) production plant at the BASF Petronas Chemicals Sdn Bhd integrated site in Kuantan.

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The plant, which is the latest investment by the BASF and Petronas Chemicals Group Bhd is the first of its kind in the Asean region. With a total annual capacity of 30,000 tonnes, it is expected to be commissioned in Q4 2016.

2-EHAcid is a chemical intermediate used as a compound, for example, in the production of synthetic lubricants as well oil additives.

It is also used for functional fluids like automotive coolants, metal salts for paint dryers, plasticisers, stabilisers, catalysts and other applications in various industries including cosmetics.

The new 2-EHAcid plant is a synergistic opportunity for backward integration that allows for greater sustainable use of raw materials, energy and technology know-how.

BASF also operates a 2-EHAacid production plant at its Verbund site in Ludwigshafen, Germany.

BASF Petronas Chemicals is a joint venture between BASF SE and Petroliam Nasional Bhd under its subsidiary Petronas Chemicals Group (PCG).

Incorporated in 1997, the company operates an integrated complex situated at the Gebeng Industrial Zone, Pahang.

The company's share capital is 60% held by BASF SE and 40% by PCG with a total investment of about RM3.4 billion (US$900 million) in production facilities for acrylic monomers, oxo products and butanediol.

The company is building a RM1.5bil integrated aroma ingredients plant to manufacture citral, citronellol and L-Menthol.

The range of chemicals produced by BASF Petronas Chemicals currently meets the growing demand in various industries including fabric, plastics, adhesives, lacquers, dyestuff, automobile and industrial coatings, paper, diapers, water treatment, textile and leather.

This portfolio will expand with the commissioning of the Integrated Aroma Ingredients complex in late 2016.- Bernama
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