BASF to build new NPG manufacturing plant in Zhanjiang, China
Photo courtesy of BASF

BASF to build new NPG manufacturing plant in Zhanjiang, China

BASF will invest in a new world-scale neopentyl glycol (NPG) plant with an annual production capacity of 80,000 metric  tons at its new Zhanjiang Verbund site, China. With the new NPG plant expected to  come on stream in the fourth quarter of 2025, BASF’s global NPG capacity will be boosted from  255,000 metric tons to 335,000 metric tons annually, strengthening its position as  one of the world’s leading NPG manufacturers. Currently, BASF has NPG  production facilities in Ludwigshafen, Germany; Freeport, Texas, United States; as  well as Nanjing and Jilin, China. 

Boasting high chemical and thermal stability, NPG is an intermediate mainly used  in the production of powder coating resins, which are particularly successful in the  construction industry and for coating of household appliances. Due to their low  volatile organic compounds (VOC), powder coatings enable their users to comply  with VOC emission standards by reducing the release of VOCs by up to 50%  compared to liquid coatings. Other applications for NPG include the manufacture of  lubricants, plasticizers and pharmaceuticals. 

“Investing in an NPG plant at the Zhanjiang Verbund site will enable us to support  the growing demand from customers in Asia, particularly in the field of powder  coatings in China. Leveraging the synergies arising from our unique Verbund model  and top-notch technologies, we are confident that our investment in the NPG plant  will enhance our competitive edge mainly in China, the world’s largest chemical  market,” said Vasilios Galanos, senior vice president, Intermediates Asia Pacific, BASF.

“We are responding to the growing demand of Chinese customers for environmentally friendly powder coatings. We will step up the construction of the  new NPG plant to support the growth of our business partners, while expanding our  footprint and sustaining our position as a leading supplier in this vast market,” said Anup Pandey, director, Business Management, Acids & Polyalcohols, BASF  Intermediates Asia Pacific.