BASF announces two new joint ventures in China
BASF and Xinjiang Markor Chemical Industry Co. Ltd plan two new joint ventures for the production of butanediol (BDO) and polytletradydrofuran (PolyTHF®, chemical name polytetramethylene ether glycol) in Korla, Xinjiang Uygur autonomous region in Northwest China. The agreements are signed but await further closing conditions and regulatory approvals
The joint venture partners intend to build a plant for the production of BDO and one of PolyTHF, both to go on stream in 2015 The annual capacities will be 100000 t of BDO and 50000 t of PolyTHF. PolyTHF is primarily used to make elastic spandex fibres for a large variety of textiles, including underwear, outer- and sportswear and swimsuits. It serves also as a chemical building block for thermoplastic polyurethanes (TPA) used to make hoses, films and cable sheating. Other applications include thermoplastic polyetheresters, polyetheramides and cast elastomers for the production e.g. of wheels for skateboards and inline skates. BDO is used in the manufacturing of technical plastics, polyurethanes, solvents, electronic chemicals and elastic fibres.
BASF produces actually PolyTHF with an annual capacity of 250000 t at its sites in Geismar (USA), Ludwigshafen (D), Ulsan (Korea) and Shanghai Caojing (PRC), and BDO with an annual capacity of 535000 t at its sites in Geismar, Ludwigshafen, Caojing, as well as in Chiba (J) and Kuantan, Malaysia.
Markor currently produces BDO with an annual capacity of 1600000 t and is the largest producer of BDO in China. To date, the company has invested CNY 5 billion (around EUR 600 million) in Markor Chemical Park. Xinjiang Markor Chemical Industry Co., Ltd. is a subsidiary of Markor Investment Group Co. Ltd. founded in 2004 and it is located in Markor Chemical Park in Economic and Technological Development zone of Korla, Xingjiang (PRC) and is making use of the local natural gas resources allowing an outstanding performance in view to energy saving and environmental protection.
In this context we draw your attention also to the fact that BASF has just announced a price increase for the BDO products in Europe.