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JV plants to cost billion$ Production of high-quality products in anticipation of tighter regulatory standards for industry and environment

JV plants to cost billion$ Production of high-quality products in anticipation of tighter regulatory standards for industry and environment

Last
week, the joint venture between BASF SE and Petronas Chemicals Group Bhd, BASF
Petronas Chemicals (BPC), announced plans to build two plants, including one
for reactive polyisobutene (HR PIB), with an annual capacity of 50,000 tonnes,
to be operational by the end of 2017.

HR PIB is
a component for the production of fuel and lubricant additives, such as fuel
detergents or dispersants for engine oils.

BPC
managing director Dr Stefan Beckmann told StarBiz that the new plants’
investment could be to the tune of billions of ringgit based on earlier
projects of similar scale.

He is
confident that the chemical would be in demand in Asia due to increasingly
higher standards for industry and the environment.

“Increasing
environmental and regulatory standards will require higher performing engine
oil and fuel, especially in the growth region Asia. HR PIB is an essential raw
material to help industry players to fulfil such standards.

“The new
plant will support the respective industry segments to achieve their objectives
for sustainability,” Beckmann said.

In April
last year, the company broke ground on its new integrated aroma ingredients
complex, which would house facilities to produce citral, citronellol and
L-menthol. With an investment amount of around RM1.5bil, the aroma ingredients
produced would be used as flavours and fragrances for the food and beverage,
fabric, homecare and personal care industries.

Recently,
construction started on a 2-EHAcid plant with a total annual capacity of 30,000
tonnes. This plant is expected to be commissioned towards the end of next year.

Malaysian
Investment Development Authority (Mida) chief executive officer Datuk Azman
Mahmud said the investment would have tremendous impact not only on Pahang, but
also other parts of Malaysia because it would provide potential business
opportunities to supporting industries.

“This
project is expected to create export revenue of RM300mil to the country as 100%
of HR PIB will be for the export market,” he said.

Mida
approved the establishment of the HR PIB plant in March.

BPC
operates an integrated petrochemical complex located in Gebeng. Petronas
Chemicals has a 40% stake in BPC, with the remainder held by BASF.

“The
range of chemicals produced by BPC meets the growing demand in various
industries including that of plastic, adhesives, lacquers, dyestuff, automobile
and industrial coatings, paper, diapers, water treatment, textile and leather,”
Beckmann said.

Source : StarBiz 

31 July 2015
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