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

Meredian merging with Danimer Scientific

July 24, 2014 1:59 pm ET

Bioplastics maker Meredian Inc. is merging with its sister firm, Danimer Scientific LLC.    More

Image

US Bioplastics receives funding to bring Gatoresin to the market

July 24, 2014 1:44 pm ET

Materials maker U.S. Bioplastics is hoping its Gatoresin product will take a bite out of the bioplastics market, thanks to funding from a state...    More

Image

Prices trending up for some recycled resins

July 24, 2014 1:27 pm ET

Plastics News is correcting prices for recycled grades of several commodity resins on this week's resin pricing chart.    More

Image

BASF posts growth in second quarter

July 24, 2014 11:08 am ET

German chemical giant, BASF SE, has announced a 1 percent growth in sales for the second quarter of 2014 compared to the same period in...    More

Image

Bayer PC used for lightweight, durable luggage collection

July 24, 2014 10:52 am ET

Bayer MaterialScience has partnered with U.S.-based travel goods manufacturer Andiamo Luggage LLC to create a special plastic for suitcases that is sc...    More

Market Reports

Injection Molders Market Report & Ranking 2014

This special package contains our 132-page 2014 Market Report on the Injection Molding segment and our exclusive 2014 RANKINGS database of 500+ Injection Molders for a discounted package price.

Learn more

Plastics Recycling Market Review & Outlook 2014

This special report from Plastics News examines the North American plastics recycling industry and provides insight into indicators that impact market viability, including Resin pricing trends for virgin and recycled market material and historical Resin production trends for post- consumer and industrial waste.

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

Upcoming Plastics News Events

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

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

More Events