BASF is expanding with new plants for Neopentylglycol and Ammonia

BASF is expanding with new plants for Neopentylglycol and Ammonia

BASF and SINOPEC will build a new world scale production plant for Neopentyglycol (NPG) at their state-of-the-art Verbund site, BASF YPC Co. Ltd., a 50:50 joint venture in Nanjing, China. The plant, with a total annual capacity of about 40000 MT is planned to go on stream at the end of 20’15. The new NPG plant will benefit from backward integration into the Nanjing Verbund site, allowing high delivery reliability and maximising efficient use of energy and resources

NPG is a unique polyalcohol offering superior performance in many end-use applications, such as coatings, textiles and construction due to its high chemical and thermal stability. It is mainly used as a building block in polyester resins for coatings, unsaturated polyester and alkyd resins, lubricants and plasticisers. AS the global market leader BASF has NPG production facilities in Ludwigshafen, Germany, Freeport USA and Jilin, China.

SINOPEC is one of the largest integrated energy and chemical companies, with upstream, midstream and downstream operations in China. Its principal operations include the exploration and production, pipeline transportation and sales of petroleum and natural gas; the sales, storage and transportation of petroleum products, petrochemical products, synthetic fibre, fertiliser and other chemical products; import and export, as well as import and export agency business of oil, natural gas, petroleum products, petrochemical and chemical products, and other commodities and technologies; and research, development and application of technologies and information.

BASF-YPC Co., Ltd. successfully started commercial production at the first phase of the integrated petrochemical site in 2005 and inaugurated the second phase creating an extended value chain and increasing the production of fine chemicals in January 2012. 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 plant on stream since December 2013, the company will enhance its support to home care and hygiene industry, as well as coatings, textiles, and construction industries. These plants are interconnected in order to use products, by-products and energy in the most efficient way, to save cost and minimise environmental impact. The site also has a gas-fired power plant and an international port on a tributary of the Yangtze River to ensure optimum energy supply and logistics. BASF-YPC Co., Ltd. posted sales of EUZR 2.84 billion in 2013 and employed 1993 people as of the end of that year.

The other plant for ammonia, BASF is planning with Yara to jointly build a world-scale ammonia plant on the U.S. Gulf Coast. The proposed plant would be located at the existing BASF site in Freeport, Texas, with an annual capacity of 750000 MT, and will be based on hydrogen-synthesis process. Further details of the planned joint venture are currently under discussion between the two parties.

BASF, which has a strong presence in the U.S., is currently a major user of ammonia for its U.S. downstream activities and intends to further strengthen its backward integration. Yara, with its global ammonia network and market expertise, seeks to strengthen its presence in America.

Yara delivers solutions for sustainable agriculture and the environment. Its fertilisers and crop nutrition programmes help to produce the food required for the growing world population. Its industrial products and solutions reduce emissions, improve air quality and support safe and efficient operations. The company was founded in Norway in 1905, today the company has a worldwide presence with sales to 150 countries.

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