BASF and Markor plan two polyurethane intermediates joint ventures in China

URETHANES TECHNOLOGY INTERNATIONAL

Published: March 5, 2013 9:02 am ET
Updated: March 5, 2013 9:04 am ET

Related to this story

Topics Materials, Materials Suppliers
Companies & Associations BASF SE

LUDWIGSHAFEN, GERMANY — BASF SE and Xinjiang Markor Chemical Industry Co. Ltd. (Markor) plan to establish two joint ventures to make butanediol (BDO) and polytetrahydrofuran (Poly THF), in Korla, Xinjiang Uygur autonomous region in northwest China.

The joint venture agreements have already been signed but the firms say, they are subject to further closing conditions and regulatory approvals.

The joint venture companies intend to build a plant to make BDO and one to make PolyTHF. These are planned to go on stream in 2015. The annual capacities of the plants located in Korla will be 100,000 metric tons of BDO and 50,000 metric tons of PolyTHF.

BASF declined to specify the investment levels or equity structure of the joint venture but confirmed that a condition of the deal was that the plant was situated in Korla, rather than at its other sites in China. Makor has two existing BDO plants at Korla and has total BDO capacity in China of 160,000 metric tons. Markor has invested about RMB 5 billion (about 600 million euros) in the Korla Chemical Park, before this announcement.

"We are aiming to expand our local production capacity in order to support our customers in the Chinese market," said Guido Voit, senior vice president, responsible for the region Asia Pacific within BASF's Intermediates division.

"Thanks to our integrated value chain, we can achieve great synergies, enabling us to serve our customers better. We look forward to working with BASF to further expand our joint business in China," said He Xiaorong, vice president of Markor Group.

BASF produces PolyTHF at the following sites Geismar, La.; Ludwigshafen, Germany; Ulsan, South Korea and Shanghai, Caojing, China. Its PolyTHF capacity is 250,000 metric tons/year.

BASF has 535,000 metric tons of annual BDO capacity with plants at Geismar; Ludwigshafen; Caojing; Chiba, Japan and Kuantan, Malaysia.

According to China's Chemical Industry: The new forces driving change a report from KPMG, a business consultancy, China accounted for 20 percent of polyurethane demand in 2011. Research China puts the growth rate for polyurethane at around 10 percent year on year.

PolyTHF is primarily used to make elastic spandex fibers for a large variety of textiles, including underwear, outerwear, sportswear and swimsuits. It also serves as a chemical building block for thermoplastic polyurethanes (TPU) used to make hoses, films and cable sheathing.

Other applications include thermoplastic polyetheresters, polyetheramides and cast polyurethane elastomers for the production of for example wheels for skateboards and inline skates. BDO is used in the manufacturing of technical plastics, polyurethanes, solvents, electronic chemicals and elastic fibers.


Comments

BASF and Markor plan two polyurethane intermediates joint ventures in China

URETHANES TECHNOLOGY INTERNATIONAL

Published: March 5, 2013 9:02 am ET
Updated: March 5, 2013 9:04 am ET

Post Your Comments


Back to story


More stories

Image

Foster building medical polymers plant

September 19, 2014 1:39 pm ET

Foster Delivery Science is investing $8 million in a new plant in Putnam, Conn., for production of medical polymer blends, as well as rods, film or...    More

Image

BP to restart damaged PTA unit in limited capacity by November

September 19, 2014 10:27 am ET

British Petroleum plc may restart its fire-damaged purified terephthalic acid (PTA) feedstock unit in South Carolina in late October or early...    More

Image

Bayer spinning off plastics business

September 18, 2014 8:49 am ET

Bayer AG will spin off its MaterialScience plastics group into a separate, publicly-traded company within the next 12 to 18 months.    More

Image

Investor group wants DuPont to split in two

September 18, 2014 7:37 pm ET

Investment firm Trian Fund Management LP is calling for plastics and chemicals giant DuPont Co. to split itself into two firms, one of which would...    More

Image

PET to PET boosts recycling capacity

September 18, 2014 11:14 am ET

PET to PET Recycling Austria GmbH, a bottle-to-bottle PET recycling operation backed by Coca-Cola Hellenic Bottling and several beverage manufacturers...    More

Market Reports

Plastics Caps & Closures Market Report

The annual recap of top trends and future outlook for the plastics caps & closures market features interviews with industry thought leaders and Bill Wood’s economic forecast of trends in growing end markets. You will also gain insight on trends in caps design, materials, machinery, molds & tooling and reviews of mergers & acquisitions.

Learn more

Shale Gas Market - Analysis of North American Region

This report highlights the impact of shale-based natural gas on the North American plastics market and features an in-depth analysis of production trends in the United States during 2013 and a forecast for 2014 and beyond.

Learn more

Thermoformed Packaging 2014 Market Review & Outlook – North America

This in-depth report analyzes economic and market trends, legislative/regulatory activity impacting supply and demand, business opportunities and threats, materials pricing, manufacturing technology, as well as growth strategies being implemented by thermoformed packaging companies.

Learn more

Upcoming Plastics News Events

January 14, 2015 - January 14, 2015Plastics in Automotive

February 4, 2015 - February 6, 2015Plastics News Executive Forum 2015

More Events