BASF Petronas Chemicals to set up 2-ethylhexanoic acid plant in Malaysia

BASF Petronas Chemicals– a joint venture between BASF and Malaysia’s Petronas Chemicals Group Berhad (PCG) - will build a new production plant for 2-ethylhexanoic acid (2-EHAcid) at its site in Kuantan, Malaysia. The construction of this plant, which will be the first of its kind in the ASEAN region, is expected to commence in Q2 of 2015. The plant, with a total annual capacity of 30,000 metric tonnes of 2-EHAcid, is expected to start production in the fourth quarter of 2016.
 
“With this new plant, we are responding to our customers’ growing demands in Asia Pacific. Through this additional capacity BASF will become one of the leading suppliers for high purity 2-ethylhexanoic acid in the region. This investment further strengthens BASF’s offering in various downstream markets across a broad range of applications,” said Stefan Blank, President, BASF Intermediates division.
 
“With this project, Petronas and BASF are fully utilizing our strengths in the areas of resources, technology, talent and management,” said Datuk Sazali Hamzah, president & chief executive officer of Petronas Chemicals Group (PCG).
 
A chemical intermediate 2-ethylhexanoic acid is used as a compound for example in the production of synthetic lubricants as well oil additives. It is also used for functional fluids like automotive coolants, metal salts for paint dryers, plasticisers, stabilisers, catalysts and other applications in various industries. BASF operates a 2-EHAacid production plant at its site in Ludwigshafen, Germany.
 
In addition to the proposed plant, BASF Petronas Chemicals Sdn Bhd is also building an integrated aroma ingredients complex at its Kuantan site for the manufacturing of citronellol, L-menthol as well as citral and its precursors which are widely used in flavour and fragrance industry. Groundbreaking for the $500 million integrated aroma ingredients complex was done in April 2014 and the first plant is scheduled to come on stream in 2016.