MOSCOW (MRC) -- BASF-YPC Co., Ltd. (BYC), a 50-50 joint venture between BASF and SINOPEC, has expanded the production capacity of neopentylglycol (NPG) at the state-of-the-art Verbund site in Nanjing, China, as per BASF's press release.
The plant was established in 2015 with an annual capacity of 40,000 metric tons. With the completion of the expansion in August 2020, the annual capacity will reach 80,000 metric tons.
“The new expansion marks another milestone of long-standing partnership between SINOPEC and BASF. It reinforces our commitment to enhance local production and respond to the growing needs of Chinese customers for environmentally friendly powder coatings,” said Dr. Stephan Kothrade, President and Chairman Greater China, BASF.
“SINOPEC and BASF have been working closely together for many years. The start-up of the NPG expansion plant reflects a better cooperative relationship between the two parties and is also in line with the Chinese government's steer towards improving industrial restructuring and transformation to fulfil market demand with high-quality products,” said Mr. Hong Jianqiao, Chairman of Sinopec Yangzi Petrochemical Company Limited and BASF-YPC Company Limited.
“With NPG production facilities in Asia, Europe and North America, BASF is one of the world’s leading NPG manufacturers with decades of experience in manufacturing and supplying NPG to our customers across a broad range of industries. Customers will benefit from our regional presence, innovation strength and supply reliability they have come to know and trust,” said Vasilios Galanos, Senior Vice President, BASF Intermediates Asia Pacific.
NPG is a unique polyalcohol offering superior performance in many end-use applications, especially in the production of polyester and alkyd resins for various coatings and plastics due to its high chemical and thermal stability. NPG has proven itself in many applications, especially in the production of polyester and alkyd resins for various coatings and plastics. An essential field of application is powder coatings, which prove particularly successful in the construction industry, as well as in the coating of household appliances. BASF has NPG production sites in Ludwigshafen (Germany), Freeport (USA), Nanjing (China) and Jilin (China).
As MRC reported earlier, BASF-YPC undertook a planned shutdown at its polystyrene (PS) unit in China on May 5, 2020. The unit restarted on June 20, 2020. Located in Jiangsu, China, the PS unit a production capacity of 200,000 mt/year.
According to MRC's ScanPlast report, Russia's estimated consumption of PS and styrene plastics was 225,870 tonnes in the first half of 2020, down by 8% year on year. PS consumption increased by 2% year on year in June 2020, totalling 39,590 tonnes.
BASF-YPC Company Limited (BASF-YPC) is a 50-50 joint venture between BASF and Sinopec, founded in 2000, with a total investment of approximately USD5.5 billion. The integrated petrochemical site produces about three million tons of high-quality chemicals and polymers for the Chinese market annually. The products serve the rapid-growing demand in multiple industries, including agriculture, construction, electronics, pharmaceutical, hygiene, automotive and chemical manufacturing. All BASF-YPC plants are interconnected in order to use products, by-products and energy in the most efficient way, to save cost and to minimize the environmental impact. BASF-YPC posted sales of approximately CNY 19.6 billion in 2019 and employed 1,942 people as of the end of the year.