BASF PETRONAS Chemicals is a Malaysian-based joint venture between BASF of Germany and Malaysia’s state owned Petroliam Nasional Berhad (PETRONAS) under its subsidiary PETRONAS Chemicals Group (PCG). Incorporated in 1997, BASF PETRONAS Chemicals currently operates an integrated petrochemical complex at the Gebeng industrial zone in Kuantan, Pahang. The company’s share of capital is 60% held by BASF and 40% by PCG with a total initial investment of about RM3.4 billion in production facilities for Acrylic monomers, Oxo products and Butanediol. The range of chemicals produced by BASF PETRONAS Chemicals meet the growing demand in various industries, including plastics, adhesives, lacquers, dyestuff, automobile and industrial coatings, paper, diapers, water treatment, textile and leather. In April 2014, the company broke ground on its new integrated aroma ingredients complex, which will house facilities to produce citral, citronellol and L-menthol. The aroma ingredients produced will be used as flavours and fragrances for the F&B, fabric and homecare and personal care industries.

The RM1.5 billion complex will be developed in phases, where the first plants of the complex are expected to be fully operational in 2017. This cutting-edge technological investment will make Malaysia an important hub in Asia Pacific for the world-wide supply of aroma ingredients. In June 2015, the company started the construction of a production plant for 2-Ethylhexanoic Acid (2-EHAcid). The plants has started operation since 2016 with a total annual capacity of 30,000 metric tonnes. 2-EHAcid is a chemical intermediate used as a compound, for example, in the production of synthetic lubricants and oil additives.

It is also used for functional fluids like automotive coolants, metal salts for paint dryers, plasticisers, stabilisers, catalysts and other applications in various industries including cosmetics. In March 2016, the company began building a new world-scale production plant for highly reactive polyisobutene (HR-PIB) at the BASF PETRONAS Chemicals site. The plant, which will be the first of its kind in South East Asia with a total annual capacity of 50,000 metric tonnes of HR-PIB, is expected to start production in the fourth quarter of 2017. HR-PIB is an important intermediate product for the manufacturing of high performance fuel and lubricant additives, including additives for sludge prevention.

Source: BASF PETRONAS Chemicals Sdn Bhd.