Global Demand Prompts BASF Petronas Chemicals To Expand Kuantan Plant Capacity

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BASF PETRONAS Chemicals Sdn. Bhd. plans to expand its annual production capacity of 2-Ethylhexanoic Acid (2-EHA) at its Verbund site in Gebeng Industrial Area, Kuantan, Pahang.

Apart from the production site in Kuantan, Malaysia, BASF produces 2-EHA at its Verbund site in Ludwigshafen, Germany. BPC proposes to increase its annual production capacity from 30,000 to 60,000 metric tons by 2024.

Mr. Vasilios Galanos, Senior Vice President, Intermediates Asia Pacific of BASF commented, “We are committed to supporting our customers’ growing demand in various 2-EHA downstream applications such as synthetic lubricants for the white goods industry and PVB plasticisers for safety glass production in the construction and automotive segments. With the increased capacity, we continue to ensure persistent supply capability in Asia Pacific with the highest standard of product quality.”

Datuk Sazali Hamzah, Managing Director, and CEO of PCG further elaborated, “2-EHA has been an integral part of BPC’s growth and it is timely that the expansion is planned to capture the growing market. The expansion is also in line with PCG’s sustainable growth strategy to expand our portfolio with higher-value products. By leveraging the existing integration between BPC and other PCG plants in the Kuantan Verbund site, we are able to maximise our value chain by improving the quality and cost competitiveness of our products and continue delivering innovative solutions to our customers.”

This expansion marks another milestone of the well-established partnership between BASF and PCG. Mr. Arham Abdul Rahman, Chief Executive Officer (CEO) of the Malaysian Investment Development Authority (MIDA) remarked, “The strategic venture between BASF and PCG since 1997 is among the commendable success stories in shaping the development of the chemical industry in Malaysia. BPC expansion plan is timely to strengthen the country’s chemical industry towards producing higher value-added offerings such as speciality chemicals and market-driven chemical products, which will drive the growth and development of the entire value chain.”

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