Beijing, China -- BASF-YPC, BASF and SINOPEC have signed a memorandum of understanding to explore expansion of their integrated petrochemical joint venture, BASF-YPC Co. Ltd.
In a 17 Dec announcement on the project, BASF said part of the expansion will be a world-scale hydrogen peroxide-propylene oxide (HPPO) facility.
BASF said the main projects include extension of the C3 and C4 value chains with construction of a 160-kilotonnes-per-annum (ktpa) acrylic acid facility, a new butyl acrylate plant, as well as capacity increases at the 2-propyl-heptanol, styrene monomer, and non-ionic surfactants plants.
A superabsorbent polymers (SAP) plant, to be built as the final part of the ongoing expansion project, will get feedstock from the acrylic acid facility.
The projects will collectively total about $1000 million.
The final scope of the investments will depend on the outcome of joint feasibility studies for each project, a joint statement said.
The agreement was signed 17 Dec in Beijing by Dr.Wang Tianpu, vice chairman and president, China Petroleum & Chemical Corporation (SINOPEC), Dr Ma Qiulin, general manager of SINOPEC Yangzi Petrochemical Co. Ltd, Dr Martin Brudermüller, BASF board member responsible for Asia Pacific, and Dr Albert Heuser, president BASF in Asia Pacific.
According to Wang, "With this further development of BASF-YPC, both parties will foster the integration of BASF-YPC, broaden the portfolio of downstream products in Nanjing, and meet the increasing demands on new materials in the East China region and across the country." In the 11th Five-Year Plan period, SINOPEC has set up 16 JVs with foreign companies, and total foreign investment reached $4639 million.
"As the Chinese market continues its rapid growth, we are committed to enhancing our position by further expanding our specialty chemicals business. Our longstanding partnership with SINOPEC will be intensified, and our unique integrated production system will be further strengthened by extending value chains as well as by adding new product lines," said Brudermüller
BASF's Asia Pacific Strategy 2020 aims for the group to "produce 70% of our Asia Pacific sales in the region, and the continued development of our local production base in China is crucial to achieve this," he added. BASF plans to invest approximately Euro 2000 million in Asia Pacific between 2009 and 2013.