BASF acquires styrene monomer plant from SK Evertec in South Korea

02-Jul-2001

BASF, one of the world's leading chemical companies and second largest worldwide supplier of styrenic polymers, signed a contract to acquire a styrene monomer (SM) plant from SK Evertec Corp. in South Korea. For BASF, this is a further step to increase competitiveness by the backward integration of its Korean polystyrene, ABS and expandable polystyrene plants.

The state-of-the-art SM plant has a current capacity of 320,000 metric tons. It is located at the Ulsan petrochemical complex in the same area as BASF's Styrenics site. The acquired styrene plant is already connected by pipeline to BASF's facilities, which will reduce logistic costs considerably. The deal with SK Evertec also encompasses several long-term supply contracts for raw materials (such as ethylene), steam, other utilities and services.

For decades, BASF has regarded the diverse operations along the styrene value-adding chain as one of its core competencies and has secured a leading position worldwide. Traditionally, BASF has been backward integrated in Europe but it lacked styrene production capacities in Asia, apart from a smaller 120,000 metric ton plant in Nanjing, China. Together with the SM/PO plant currently being constructed in a Joint Venture with Shell in Singapore, which will start up in the second half of 2002, this acquisition will significantly improve BASF's position. Even so, the company will remain a net styrene purchaser in Asia because of its high demand.

BASF's broad styrenics product portfolio includes a full range of polystyrene, used for example in refrigerator liners and housings for various electrical and electronic equipments. Equally important are polystyrene rigid foams, which are used both for energy-saving thermal insulation of buildings and for the packaging of impact- and temperature-sensitive goods. The styrene copolymers ABS, SAN and ASA, at the upper end of the styrenics product range, are used for more sophisticated technical applications and are an important, less cyclical, supplement to the commodities business .

As the result of BASF's ongoing globalization program, the Styrenic Polymers division has established and expanded its state-of-the-art backward integrated manufacturing platforms in all major regions from Europe to NAFTA and from South America to the major demand centers in Asia. This makes BASF the only truly global supplier of styrenic polymers.

https://www.chemeurope.com/en/news/3714/basf-acquires-styrene-monomer-plant-from-sk-evertec-in-south-korea.html