BASF and SINOPEC consider further expansion of Nanjing joint venture
- Partners investigate expansion of ethylene oxide production and new neopentylglycol unit
- Further development of acrylic acid value chain including butyl acrylate, acrylic acid and SAP: production to commence in 2014
Ludwigshafen, Germany; Nanjing, China – May 29, 2013 – BASF and SINOPEC are considering the extension of their Nanjing joint venture BASF-YPC Company Limited with the expansion of existing ethylene oxide (EO) production, and a new plant for neopentylglycol (NPG). BASF-YPC will further expand its acrylic acid value chain with additional acrylic acid and butyl acrylate plants. Production is expected to commence in 2014.
Together with the superabsorbent polymer (SAP) plant, now under construction and also expected to begin production in 2014, BASF-YPC Company will enhance its support to the home care and hygiene industries as well as the coatings, textiles, and construction industries.
“With expanded production of important basic chemicals including NPG and EO, our new world-scale acrylic acid facility, and our butyl acrylate and SAP plants, BASF can further strengthen its production base in the C2 and C3 value chains. These are the starting points for the full range of innovative solutions we offer to nearly every industry. This underlines our confidence in the development of the Asia Pacific and China markets,” said Dr. Albert Heuser, President Greater China and Functions Asia Pacific, BASF.
“With the strengthened cooperation of our joint venture, Sinopec and BASF will satisfy demand for high-quality fine chemicals that can enhance the quality of life for ordinary people. At the same time, the two companies have fully utilized their strengths in resources, technology, talent, market and management, strengthening the core competitiveness of both partners. With this cooperation, Sinopec and BASF have achieved a win-win result and will create further value,” said Mr. Chang Zhenyong, Vice Chief Engineer of Sinopec and Director General of Sinopec Chemical Division.
The partners are considering an expansion of the site’s ethylene oxide unit, which has an existing capacity of 330,000 metric tons per year. EO is a basic chemical mainly used for the production of ethylene glycol, and also for the production of surfactants for washing and cleaning agents, and as a raw material for the production of ethanolamines, glycol ethers and polyurethanes.
Additionally under consideration is a new neopentylglycol unit. NPG is a unique polyalcohol offering superior performance advantages in many end-use applications, due to its high chemical and thermal stability. It is mainly used as a building block in polyester resins for coatings, unsaturated polyesters, lubricants and plasticizers. As the global market leader for NPG, BASF is the only company in the world that has production facilities in Europe, North America, and Asia. As its production benefits from backward integration, BASF offers its customers high delivery reliability.
“We see great market potential in China and the region for these products. These state-of-the-art plants in Nanjing will further strengthen our Verbund site,” said Dr. Stephan Kothrade, President, BASF-YPC Company.
BASF-YPC broke ground on its superabsorbent polymers plant in May 2012. The facility will have a capacity of 60,000 metric tons per year. Superabsorbent polymers are materials with the capability to absorb and hold up to 500 times of their own weight in liquid – even under pressure. The product is used in form of a white grainy powder, mainly to manufacture baby diapers and adult incontinence and feminine hygiene products.
Acrylic acid is an important precursor for the production of superabsorbent polymers. Butyl acrylate, one of the esters of acrylic acid, is used to produce adhesive and surface coating raw materials.
BASF-YPC Company Limited is a 50-50 joint venture formed in 2000 between BASF and SINOPEC.
About SINOPEC
Sinopec is one of the biggest integrated energy and chemical company in China. It mainly engages in oil and gas exploration and development, crude oil refining and oil products marketing, production and marketing of chemical products, engineering service for refinery and petrochemical projects, international trading as well as science and technology development. Sinopec is Asia Number 1 and World Number 2 refined oil products producer, World Number 4 ethylene producer. It has 300,000 gas stations, ranking the second in the world. Issued A shares and H shares in October, 2000 and August, 2001, Sinopec has been listed in Hongkong, New York, London and Shanghai respectively. Sinopec ranked the 5th in Fortune Global 500 in 2012.
About BASF
BASF is the world’s leading chemical company: The Chemical Company. Its portfolio ranges from chemicals, plastics, performance products and crop protection products to oil and gas. We combine economic success with environmental protection and social responsibility. Through science and innovation, we enable our customers in nearly every industry to meet the current and future needs of society. Our products and solutions contribute to conserving resources, ensuring nutrition and improving quality of life. We have summed up this contribution in our corporate purpose: We create chemistry for a sustainable future. BASF had sales of €72.1 billion in 2012 and more than 110,000 employees as of the end of the year. BASF shares are traded on the stock exchanges in Frankfurt (BAS), London (BFA) and Zurich (AN). Further information on BASF is available on the Internet at www.basf.com.
Media contacts:
BASF
Corporate Media Relations
Holger Kapp
Phone: +49 621 60 41040
SINOPEC
Sun Ping
Phone: +86 25 5777 6898
In Asien
Genevieve Hilton
Phone: +(852) 2731 0197
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