MOSCOW (MRC) -- BASF and SINOPEC, the world's petrochemical majors, will further expand their Verbund site operated by BASF-YPC Co., Ltd. (BASF-YPC), a 50-50 joint venture of both companies in Nanjing, China, according to BASF's press release.
It includes the capacity expansion of several downstream chemical plants, including a new tert-butyl acrylate plant to support the growing Chinese market.
The partners will expand the production capacities of propionic acid, propionic aldehyde, ethyleneamines, ethanolamines and purified ethylene oxide, and build a new tert-butyl acrylate plant. The tert-butyl acrylate plant will be an extension to the downstream using acrylic acid and isobutene of the existing Verbund as feedstock, which marks the first time this advanced production technology is applied outside of Germany. The expanded and new plants are planned to come on stream in 2023.
“This is a substantial step forward since the signing of a Memorandum of Understanding in 2018 to further strengthen our long-term partnership with SINOPEC,” said Dr. Stephan Kothrade, President and Chairman of BASF Greater China. “With the envisioned investment bundle, we will introduce state-of-the-art technologies and use the Verbund advantages to the fullest.”
Propionic acid (PA) is used as a mold inhibitor for the preservation of food and feed grains. It offers strong economic and ecological benefits over preservation through drying or storage in air-tight silos. It is also used in the production of pharmaceuticals, crop protection agents, solvents and thermoplastics.
Ethyleneamines (EEA) and Ethanolamines (EOA) are intermediates used in the manufacture of crop protection agents, surfactants for personal and home care products, process chemicals for gas treatment, lubricants and cement additives, paper chemicals, and active pharmaceutical ingredients.
Propionic aldehyde (PALD) is an intermediate used as key raw material for propionic acid and n-propanol production. It is mainly used in the manufacture of pharmaceuticals, insecticides, fragrances and plastics.
Tert-butyl acrylate (TBA) is an acrylic acid ester for manufacturing polymers and is used as a feedstock for syntheses. As a specialty chemical it is used in paper sizing and emulsion applications.
Purified ethylene oxide (PEO) is a raw material for industrial applications and is often used in synthesis processes of chemical industry. It is used in the manufacturing of ethanolamines, glycol ethers and surfactants for washing and cleaning agents.
As MRC wrote before, in September 2020, BASF-YPC Co., Ltd. (BYC), a 50-50 joint venture between BASF and SINOPEC, expanded the production capacity of neopentylglycol (NPG) at the state-of-the-art Verbund site in Nanjing, China. 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 reached 80,000 metric tons.
According to MRC's ScanPlast report, PP shipments to the Russian market were 607,8900 tonnes in January-May 2021, up by 33% year on year. Shipments of homopolymer PP and PP block copolymers increased, whereas deliveries of PP random copolymers decreased.
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.
China Petrochemical Corporation (Sinopec Group) is a super-large petroleum and petrochemical enterprise group established in July 1998 on the basis of the former China Petrochemical Corporation. Sinopec Group's key business activities include the exploration and production of oil and natural gas, petrochemicals and other chemical products, oil refining.