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BASF enhances R&D capabilities with the acquisition of polyamide business from Solvay

August 24/2020

MOSCOW (MRC) -- Through the acquisition of the Solvay polyamide (PA) business, BASF has enhanced its R&D capabilities in Asia Pacific with new technologies, technical expertise, and upgraded material and part testing services, as per BASF's press release.

BASF is planning to integrate the R&D centers from Solvay into its R&D existing facilities in Shanghai, China, and Seoul, Korea. The enhanced capabilities will boost BASFs position as a solution provider to develop advanced material solutions for key industries.

Pursuing innovation in new products and applications is our goal. We will leverage the extensive know-how of the combined business to develop advanced customer-oriented material solutions, as well as to drive more projects with our customers, said Andy Postlethwaite, Senior Vice President of Performance Materials Asia Pacific, BASF. Our offering will be further supported by additional production capacity and a more extensive product portfolio, which includes new high-temperature grades.

With the acquisition of the Solvay polyamide business, BASF now has its first UL certified lab in Asia, adding to BASFs existing labs, which have an ISO 17025 accreditation. As such, test data obtained from UL accredited labs can be used directly to apply for ULs Yellow Card which is a globally recognized certification on quality, safety, and performance of plastic products. This UL certified testing capability can significantly shorten the verification process, and thus the time-to-market of flame-retardant products. 

The new lab, located in Shanghai, will be part of the companys comprehensive global R&D network and complement BASFs existing flame-retardant grade polyamide testing service, mainly for electronic and electrical solutions.

BASF has expanded its part testing capabilities with eight new tests in Shanghai, including electrodynamic shaker, burst, glycol circulation, oil separation, and stone impact. In the future, all related parts can be tested directly in Shanghai, which will make product development more efficient.

Additionally, BASF can now evaluate final parts with its expanded testing expertise. By validating the performance of the final parts with the new testing capabilities, BASF can help increase its customers product development success rate and speed-to-market.

The enhanced facilities can enable in-depth analysis and evaluation of some unique features, such as aging resistance to heat, oil, and coolant. BASFs expertise provides a deep understanding of test specifications, which have a significant impact on the results, empowering material development for the future of the automotive industry.

The strengthened capabilities in R&D will help us give a quicker response to customers in Asia Pacific, speed up the time to market and be more competitive in the engineering plastics market, said Postlethwaite.

As MRC reported previously, BASF will increase its alkoxylate capacity in Asia Pacific, with its latest investment in Jinshan, China. The company has acquired land, buildings and assets of SPC, related to alkoxylates production, adjoining the BASF Jinshan site, in order to fulfil the growing demand from customers across Asia Pacific, especially China. With the current alkoxylate line in the Care Chemicals Jinshan plant running at full capacity, this acquisition will help double the capacity at Jinshan from end 2020.

We remind that BASF-YPC, a 50-50 joint venture of BASF and Sinopec, undertook a planned shutdown at its naphtha cracker on 30 April 2020. The company initially planned to start turnaround at the cracker on April 5, 2020. The plant remained under maintenance unitl 18 June, 2020. Located in Jiangsu, China, the cracker has an ethylene capacity of 750,000 mt/year and propylene capacity of 400,000 mt/year.

Ethylene and propylene are feedstocks for producing polyethylene (PE) and polypropylene (PP).

According to MRC's DataScope report, PE imports to Russia dropped in January-June 2020 by 7% year on year to 328,000 tonnes. High density polyethylene (HDPE) accounted for the main decrease in imports. At the same time, PP imports into Russia rose in the first six months of 2020 by 21% year on year to 105,300 tonnes. Propylene homopolymer (homopolymer PP) accounted for the main increase in imports.

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 EUR59 billion in 2019.
Author:Margaret Volkova
Tags:Asia, PP, PE, homopolymer PP, propylene, HDPE, ethylene, compounding, petrochemistry, electrical goods, poliamid, BASF, Sinopec, Solvay, China, Russia.
Category:General News
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