BASF and SINOPEC will expand the production capacity of neopentylglycol (NPG) at the state-of-the-art Verbund site, BASF-YPC Co., Ltd., a 50-50 joint venture in Nanjing, China. The plant was established in 2015 with an annual capacity of 40,000 metric tons. Following the expansion, the annual capacity will be doubled to 80,000 metric tons. The expanded capacity will come on stream in 2020.
NPG is a unique polyalcohol offering superior performance in many end-use applications such as powder coatings, textiles and construction due to its high chemical and thermal stability. It is mainly used as a building block in polyester resins for coatings, unsaturated polyester and alkyd resins, lubricants and plasticizers. As the global market leader, BASF has NPG production facilities in Ludwigshafen, Germany; Freeport, Texas, United States and Jilin, China.
“With this increased capacity, we will support the fast-growing customer demand for high-quality NPG in China and the Asia Pacific region. The expansion is also in line with the trend towards environmentally friendly powder coatings with low volatile organic compounds, or VOCs,” said Narayan Krishnamohan, senior vice president, BASF Intermediates Asia Pacific.
“The investment further strengthens strategic success between SINOPEC and BASF as we both support the trend of sustainable development. Both SINOPEC and BASF have confidence in Nanjing, Jiangsu, and its future prospects, as an ideal investment destination,” said Li Cheng Feng, chairman of Sinopec Yangzi Petrochemical Company Limited and BASF-YPC Company Limited.
BASF-YPC Co., Ltd. is a 50-50 joint venture between BASF and Sinopec, founded in 2000, with a total investment of USD 5.2 billion. The integrated petrochemical site produces three million tons of high-quality chemicals and polymers for the Chinese market annually. BASF-YPC posted sales of approximately RMB 17.3 billion (USD 2.63 billion) in 2016 and employed 1,880 people as of the end of 2016.