BASF: Second major project at BASF Verbund site in Kuantan operational
BASF Petronas Chemicals Sdn Bhd, a 60:40 joint venture between BASF Aktiengesellschaft of Germany and the Malaysian state-owned company Petroliam Nasional Berhad (PETRONAS), today announced that their oxo and syngas complex on the integrated site in Kuantan, Malaysia, is now fully operational. (The first shipment of plasticizers produced at the complex was shipped to a customer in Malaysia.)
This is the second major project going on stream as scheduled at the 150 hectare site located at the East Coast of Malaysia. The first complex for the manufacturing of acrylics was already completed in July 2000. Following the first and second major projects, further expansion of the site will be a butanediol complex (100,000 metric tons per year), which is scheduled to start up in 2002. In addition, a formic acid plant (50,000 metric tons per year) is planned to be built. The combined production capacity of the plants will be more than one million metric tons per year supplying mainly customers in the Asian market. Total capital expenditures for the projects at the site will be approximately EUR 900 million.
As Dr Bernhard Nick, Managing Director of BASF PETRONAS Chemical underlines, "The operational readiness of the oxo-syngas complex is a further step in realizing our strategy of 'Verbund'." The integration of production processes, known as "Verbund" in Germany, is one of BASF's most important strengths. The company is consistently pursuing its strategy of utilizing advantages and synergies of Verbund production plants in the main regions of the world. Apart from external customers, the oxo and syngas complex will also supply products to the acrylic ester plants and therefore mark an important step towards achieving this goal. "This will lead to efficient production and manufacturing for BASF PETRONAS Chemicals, and will benefit the customers by quality products and on-time delivery.", said Dr Nick.
The oxo and syngas complex consists of six plants, including those for the production of syngas, oxo alcohols (250,000 metric tons per year), phthalic acid anhydride (40,000 metric tons) and plasticizers (100,000 metric tons). Plasticizers, an essential chemical component used in the production of flexible vinyl sheets and flexible PVC product applications such as flooring, wires and cables, footwear and toys will constitute the main product to be sold from the complex.
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