Recently, BASF Petrochemicals Malaysia (BPC), a joint venture between BASF and Petronas Petrochemicals (PCG), a subsidiary of Petronas, is planning to re-adjust its product portfolio to focus on long-term growth.
BASF and PCG continue to review and optimize their product portfolios. In view of this, Malaysia’s BASF Petrochemicals plans to close its butanediol (BDO) and its derivative production facilities in Kuantan, Malaysia in March 2021. The decision will not affect other devices in the production base.
According to reports, Malaysia’s BASF Petronas Chemical was established in 1997. It has a comprehensive chemical integration base in the Gebin Industrial Zone, Kuantan, Pahang. BASF holds 60% of its shares. The main products include acrylic acid monomers, oxo products, and Glycol, 2-ethylhexanoic acid, highly reactive polyisobutene and aroma components.
Taking into account the changes in the market environment and the pessimistic long-term prospects, BASF and PCG continue to review their product portfolios and make optimization adjustments, and decided to close the BDO device. This will bring long-term strategic benefits to BASF Petrochemicals Malaysia and its stakeholders. . In the future, it plans to develop specialty chemicals and other businesses and use advanced technology to produce high-value new products to open up new markets and win new customers.
Vasilios Galanos, Senior Vice President of BASF's Intermediate Business Unit in Asia Pacific, said that as one of the leading companies in the BDO and derivatives business, we have long been committed to the sustainable development of the value chain. This measure is part of our strategy to ensure further enhancement of market competitiveness.
BPC Managing Director Marko Murtonen pointed out that this decision was due to the recent investment in several coal-based BDO production facilities in the region, which resulted in serious overcapacity. At present, BPC is assisting all customers to smoothly pass the transition period and will continue to provide services to customers in the region by producing other products.
