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

Plastics Pioneers Association names four new members

October 24, 2014 1:33 pm ET

MCHENRY, ILL. — The Plastics Pioneers Association has elected four new members: John Beaumont, Joseph Bennett, James Johnson and Dennis Meade.    More

Image

Akro-Plastic buying German subsidiary from Metabolix

October 24, 2014 3:32 pm ET

Akro-Plastic GmbH, a Niederzissen, Germany-based plastic compounder, has purchased the assets of Metabolix Inc.'s subsidiary in Germany.    More

Image

BASF pre-tax earnings rise, but will miss financial targets for 2015

October 24, 2014 10:16 am ET

BASF SE has raised its expectations for pre-tax earnings in 2014 but warned that it would not hit its financial targets for next year.    More

Image

Sabic, Shell cancel expansion for SADAF joint venture in Saudi Arabia

October 24, 2014 9:19 am ET

Saudi Basic Industries Corp. and Royal Dutch Shell have cancelled plans to expand an existing petrochemical joint venture in Saudi Arabia following...    More

Image

Sadara CEO says Middle East now has 20 percent of global ethylene capacity

October 24, 2014 9:33 am ET

Sadara CEO Ziad Al-Labban claims that the Middle East's ethylene capacity is now 20 percent of global production.    More

Market Reports

Plastics Recycling Trends in North America

This report is a review and analysis of the North American Plastics Recycling Industry, including key trends and statistics based on 2013 performance. We examine market environment factors, regulatory issues, industry challenges, key drivers and emerging trends in post-consumer and post-industrial recycling.

Learn more

Plastics in Mexico - State of the Industry Report

This report analyzes the $20 million dollar plastics industry in Mexico including sales of machinery & equipment, resins and finished products.

Our analysts provide insight on business trends, foreign investment, top end markets and plastics processing activity. The report also provides important data on exports, production, employment and value of plastics products manufactured.

Learn more

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

Upcoming Plastics News Events

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

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

June 2, 2015 - June 3, 2015Plastics Financial Summit - Chicago 2015

September 16, 2015 - September 18, 2015Plastics Caps & Closures - September 2015

More Events