BASF, Petronas to build polyisobutene production plant in Malaysia

July 22, 2015

BASF and Petronas Chemicals Group Berhad (PCG) have announced plans to build a polyisobutene production plant at the site of their existing joint venture in …

BASF and Petronas Chemicals Group Berhad (PCG) have announced plans to build a polyisobutene production plant at the site of their existing joint venture in the Malaysian state of Pahang.

The two companies said on Tuesday that the plant, the first of its kind in South East Asia, will have a total annual capacity of 50,000 metric tons of highly reactive polyisobutene (HR-PIB).

HR-PIB is an intermediate product used in the manufacturing of high performance fuel and lubricant additives, including additives for sludge prevention.

In addition to the new plant, BASF operates production facilities for HR-PIB at its Verbund sites in Ludwigshafen, Germany, and Antwerp, Belgium, and as part of a joint venture with Sinopec YPC in Nanjing, China.

Its joint venture in Malaysia, BASF Petronas Chemicals, operates an integrated complex at the Gebeng Industrial Zone, Kuantan, Pahang.

The jointly owned business is also building two other plants at the Kuantan site: an integrated aroma ingredients complex for the manufacturing of citronellol and L-menthol as well as citral and its precursors, which are widely used in the flavor and fragrance industry; and a production plant for the manufacturing of 2-ethylhexanoic acid (2-EHA) compound for the production of synthetic lubricants and oil additives.

The investment announced this week “marks another significant milestone in the development of the Kuantan site as a leading specialty chemicals hub in the Asia Pacific region, in line with PCG’s strategy to diversify into specialty chemicals and solutions,” said Datuk Sazali Hamzah, president and CEO of Petronas Chemicals Group Berhad.

The new plant is expected to start production in the fourth quarter of 2017.

Sponsored Recommendations

2024 Manufacturing Trends — Unpacking AI, Workforce, and Cybersecurity

The world of manufacturing is changing, and Generative AI is one of the many change agents. The 2024 State of Smart Manufacturing Report takes a deep dive into how Generative ...

State of Smart Manufacturing Report Series

The world of manufacturing is changing, and Generative AI is one of the many change agents. The 2024 State of Smart Manufacturing Report takes a deep dive into how Generative ...

Trying to Keep Pace with Supply Chain Disruption?

CPG manufacturers are struggling to keep up with supply chain disruptions. Learn how to build more resilient operations –and reduce demand shock.

Mitigating Cybersecurity Threats – Step-by-Step

Distributor Wesco adds services focused on identifying and solving OT network and security vulnerabilities in critical manufacturing.