MOSCOW (MRC) -- BASF India plans to double its capacity for polymer dispersions with a new production line at its site in Dahej, Gujarat, as per the company's press release.
Through the investment, BASF aims to provide a reliable supply of high-quality dispersion solutions to customers in the fast-growing Indian and South Asian markets.
"We see a growing need for our latest generation of innovations, including low-VOC and low-odor dispersions for industries, such as architectural coatings, construction, paper and adhesives. This capacity increase aims to address customers’ needs and support their development in the region," said Jeff Knight, Senior Vice President, Dispersions and Resins Asia Pacific, BASF.
"This new investment will double the production capacity by early 2021. It will be a driving force to support our customers’ growth in the rapidly growing economies in South Asia," said Narayan Krishnamohan, Managing Director, BASF India Limited and Head, BASF South Asia.
BASF began production of polymer dispersions in Dahej, Gujarat in October 2014, and currently operates one line at the plant. As the largest single investment to date for BASF in India, the site is an integrated hub for polyurethanes manufacturing and houses production facilities for Polymer Dispersions as well as Care Chemicals. BASF also produces dispersions in Mangalore, a strategic production site in the southern part of India.
Apart from South Asia, BASF will also double the production capacity in its Pasir Gudang site in Malaysia to support the rising demand for acrylics dispersions in ASEAN, Australia and New Zealand. The new line will be operational in Q2 2020.
We remind that, as MRC reported earlier, BASF, the world's petrochemical major, restarted its No. 1 steam cracker in Germany on September 30, 2019, following a maintenance turnaorund. The plant was shut for maintenance in mid-August, 2019. Located at Ludwigshafen in Germany, the No. 1 cracker has an ethylene production capacity of 235,000 mt/year and a propylene production capacity of 125,000 mt/year.
Ethylene and propylene are feedstocks for producing polyethylene (PE) and polypropylene (PP).
According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,724,670 tonnes in the first ten months of 2019, up by 7% year on year. Shipments of all PE grades increased. The estimated PP consumption in the Russian market in January-October 2019 totalled 1,066,520 tonnes, up by 7% year on year. Supply of block copolymers of propylene (PP block copolymer) and homopolymer of propylene (homopolymer PP) increased, demand for statistical copolymers (PP random copolymer) decreased.
BASF is the leading chemical company. It produces a wide range of chemicals, for example solvents, amines, resins, glues, electronic-grade chemicals, industrial gases, basic petrochemicals and inorganic chemicals. The most important customers for this segment are the pharmaceutical, construction, textile and automotive industries. BASF generated sales of around EUR63 billion in 2018.
MRC