BASF Petronas Chemicals to ramp-up production in Kuantan

BASF Petronas Chemicals Sdn. Bhd. (BPC), a joint venture between BASF and Petronas Chemicals Group Berhad (PCG), plans to expand its annual production capacity of 2-Ethylhexanoic Acid (2-EHA) at its Verbund site in Gebeng Industrial Area, Kuantan, Pahang.

This milestone looks to not only strengthen the company’s presence in Asia but to also meet the demands of their customers worldwide.

BPC’s announcement was one of the key discussion points during the meeting between BASF, represented by Dr. Markus Kamieth, Member of the Board of Executive Directors of BASE SE and the Trade and Investment Mission’s (TIM) delegation to Germany, led by Datuk Seri Mohamed Azmin Ali, Senior Minister and Minister of International Trade and Industry (MITI), on 13 October 2021.

Azmin commended the BPC project and expansion plan in Malaysia, saying BPC as a fully integrated oil and gas multinational has been instrumental in propelling the growth and further value-adding to the Malaysia’s speciality chemical ecosystem.

“The Government, through MITI and MIDA will continue to provide the requisite assistance to the Company to realise their future plans, reinforcing our commitment to attract and sustain quality investments in the country.

“This is crucial as our industries manufacture for a cleaner, greener, more sustainable future in line with the Environment, Social and Governance values (ESG) under the United Nations Sustainable Development Goals (UNSDG),” he said.

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 of 2-EHA from 30,000 to 60,000 metric tons by 2024.

2-EHA is a chemical intermediate used as a compound in the production of synthetic lubricants as well as oil additives. It is also used in functional fluids such as automotive coolants, metal salts for paint dryers, plasticisers, stabilisers and catalysts in various industries.




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