BASF Petronas Chemicals to ramp up production in Kuantan - MIDA | Malaysian Investment Development Authority
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BASF Petronas Chemicals to ramp up production in Kuantan

BASF Petronas Chemicals to ramp up production in Kuantan

18 Oct 2021

BASF PETRONAS Chemicals Sdn Bhd (BPC), a Malaysia-based joint venture between Germany’s BASF and PETRONAS Chemicals Group Bhd (PCG), is planning to expand its annual production capacity of 2-Ethylhexanoic Acid (2-EHA) at its Verbund site in Gebeng Industrial Area, Kuantan, Pahang.

International Trade and Industry (MITI) Minister Datuk Seri Mohamed Azmin Ali, who is currently on a trade and investment mission to Europe, commended the BPC project and expansion plan in Malaysia.

“The government, through MITI and the Malaysian Investment Development Authority (MIDA), will continue to provide the requisite assistance to the company to realise their future plans, reinforcing our commitment to attract and sustain quality investments in the country,” he said in a statement today.

According to the statement, the plan to expand production was one of the key discussion points during the meeting between BASF, represented by BASF SE member of the board of executive directors Dr Markus Kamiet, and the Senior Minister on Oct 13, 2021.

Apart from the production site in Kuantan, BASF produces 2-EHA at its Verbund site in Ludwigshafen, Germany. BPC proposes to increase its annual production capacity of 2-EHA from 30,000 to 60,000 metric tonnes by 2024.

PCG managing director and CEO Datuk Sazali Hamzah elaborated that 2-EHA has been an integral part of BPC’s growth and it is timely that the expansion is planned to capture the growing market.

“The expansion is also in line with PCG’s sustainable growth strategy to expand our portfolio with higher value products.

“By leveraging the existing integration between BPC and other PCG plants at the Kuantan Verbund site, we are able to maximise our value chain by improving the quality and cost competitiveness of our products and continue delivering innovative solutions to our customers,” he said.

Used as a compound in the production of synthetic lubricants as well as oil additives, 2-EHA is a chemical intermediate also used in functional fluids such as automotive coolants, metal salts for paint dryers, plasticisers, stabilisers, and catalysts in various industries.

Source: Bernama