BASF and PETRONAS signed a Memorandum of Understanding to undertake a joint feasibility study to produce specialty chemicals in Malaysia, a move that would extend the two parties’ existing business collaboration in the country. The partners are considering a potential joint investment sum of approximately MYR 4.0 billion / €1.0 billion.
Under the terms of the MoU, the two parties will evaluate the technical, commercial and economic viability of jointly owning and operating world-scale facilities for the production of specialty chemicals including non-ionic surfactants, methanesulfonic acid, iso-nonanol as well as other C4-based specialty chemical products. The final scope of the investments will be determined following the outcome of the joint feasibility study which is targeted to be completed in 2011.
The MoU was signed at the PETRONAS headquarters in Kuala Lumpur. Signing on behalf of PETRONAS were Datuk Wan Zulkiflee Wan Ariffin, Executive Vice President of Downstream Business, and Encik Kamaruddin Zakaria, Vice President of Downstream Operations. Dr. Martin Brudermüller, member of the Board of Executive Directors of BASF SE, responsible for Asia Pacific, and Ms. Saori Dubourg, President, Asia Pacific, BASF, signed on behalf of BASF. Datuk Wan Zulkiflee Wan Ariffin said, “The development of a new specialty chemical products portfolio is an important component of PETRONAS' plan to further grow the downstream petrochemical business as part of its integrated plan to be a key player in the region as well as to spur domestic investment in the oil, gas and petrochemical industries.”
Dr. Martin Brudermüller said, "With the rapid growth of chemical markets in Asia Pacific, we are further expanding our specialty chemical business. Our joint venture with PETRONAS, based on a long-standing and successful partnership, is an excellent, well-established and competitive production platform in Asia. By expanding our local production base in Malaysia, we can further improve our ability to supply our customers in Asia, from Asia."