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BASF and Petronas JV to close BDO plant in Malaysia

November 19/2020

MOSCOW (MRC) -- BASF and PETRONAS will close a butanediol (BDO) plant at their joint venture site in Kuantan, Malaysia, in the first quarter of 2021, said Chemweek.

BASF PETRONAS Chemicals (BPC) intends to shut down the unit, which produces BDO and derivatives, by March 2021, the companies said, due to significant overcapacity in the region due to new investments by competitors into coal-fired production units.

The decision to close the BDO plant will have long-term strategic benefits to BPC and its stakeholders, given the shift in business landscape as well as its unfavourable long term prospect, said PETRONAS Chemical CEO Datuk Sazali Hamzah.

BPC managing director Marko Murtonen noted the company would work to provide assistance to employees affected by the move, without stating how many workers at the site will be losing their jobs. No other production units at the site are affected, the companies said in a statement.

As MRC informed earlier, BASF and Petronas were considering jointly investing around EUR1bn (USD1.34bn) to produce specialty chemicals in Malaysia.

However, Petronas and German chemical company BASF said they had scrapped a proposed joint venture to develop a specialty chemicals production facility in Malaysia. The proposed partnership was terminated because both parties couldn't agree on the "terms and conditions" for the project in the southern state of Johor, the companies said in a joint statement.

As MRC informed earlier, BASF had put a project to build a petrochemicals complex in India worth up to USD4 billion on hold due to the economic uncertainty caused by the COVID-19 pandemic.

We remind that Russia's output of chemical products rose in September 2020 by 6.7% year on year. At the same time, production of basic chemicals increased by 6.1% year on year in the first nine months of 2020, according to Rosstat's data. According to the Federal State Statistics Service of the Russian Federation, polymers in primary form accounted for the greatest increase in the January-September output. Last month's production of primary polymers decreased to 852,000 tonnes from 888,000 tonnes in August due to shutdowns in Tomsk, Ufa and Kazan. Overall output of polymers in primary form totalled 7,480,000 tonnes over the stated period, up by 16.4%  year on year.


mrcplast.com
Author:Anna Larionova
Tags:petroleum products, neftegaz, petrochemistry, BASF, Petronas.
Category:General News
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