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

ISO publishes international standard for measuring phthalates in toys

August 19, 2014 10:40 am ET

The Geneva-based International Organization for Standardization (ISO) has published an international standard on phthalates used as plasticizers in...    More

Image

RTP expands very long fiber thermoplastic production to Mexico

August 19, 2014 9:47 am ET

RTP Co. has introduced very long fiber reinforced compounds at its Monterrey, Mexico, facility.    More

Image

Ineos takes its first step into UK shale exploration

August 18, 2014 1:15 pm ET

Ineos Group AG has moved into United Kingdom shale exploration with the purchase of BG Group’s 51 percent share of the shale section of a joint ...    More

Image

Material Insights: PolyOne shows off material to designers

August 18, 2014 12:39 pm ET

PolyOne takes its shape memory polymers to a designers conference, PET resin prices rise and Lanxess announces expansion.    More

Image

BMW closes the carbon fiber loop

August 18, 2014 10:43 am ET

BMW's extensive use of carbon fiber-reinforced plastic in its i-series vehicles has prompted the development of ways to recycle unused material.    More

Market Reports

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

Pipe, Profile & Tubing Extrusion in North America 2014

U.S. demand for extruded plastics is expected to grow by 3 percent in 2014, with PVC remaining the largest segment.

Plastic pipe will post the strongest gains through 2018, continuing to take market share from competing materials in a range of markets.

Our latest market report provides in-depth analysis of current trends and their financial impact on the pipe, profile and tubing extrusion industry in North America.

Learn more

2014 Injection Molding Industry Report

GROWTH, OPPORTUNITY IN SIGHT FOR INJECTION MOLDERS IN 2014

In the wake of the economic turbulence earlier in this decade, molders today find themselves in much better shape. Molders are gaining a competitive advantage by investing in people, equipment and seeking inroads into new markets on a global scale.

Growth in the injection molding industry is going to be driven by low financing costs and a continued move to reshore some business.

Learn more

Upcoming Plastics News Events

September 10, 2014 - September 12, 2014Plastics Caps & Closures 2014

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

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

More Events