Written on 12.03.2013 - Industry
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BASF and Markor to establish two JVs for butanediol and polytetrahydrofuran in China

BASF and Xinjiang Markor Chemical Industry Co., Ltd. plan to establish two joint ventures for the production of butanediol (BDO) and polytetrahydrofuran (PolyTHF, chemical name: polytetramethylene ether glycol) in Korla, Xinjiang Uygur autonomous region, Northwest China. The JV agreements have already been signed but are subject to further closing conditions and regulatory approvals.

The joint venture companies intend to build a plant for the production of BDO and one for PolyTHF which are planned to go on stream in 2015. The annual capacities of the plants located in Korla will be 100,000 t of BDO and 50,000 t of PolyTHF.

“Based on our globally leading PolyTHF technology and the strong local presence of Markor in China, we are aiming to expand our local production capacity in order to support our customers in the Chinese market with high quality products,” said Dr. Guido Voit, Senior Vice President, responsible for the region Asia Pacific within BASF’s Intermediates division.

“We are glad to partner with BASF, who provides its state-of-the-art PolyTHF technology to the joint ventures. Thanks to our integrated value chain, we can achieve great synergies, enabling us to serve our customers better. We look forward to working with BASF to further expand our joint business in China,” said He Xiaorong, Vice President of Markor Group.

BASF produces PolyTHF with an annual capacity of 250,000 t at its sites in Geismar, LA, USA; Ludwigshafen, Germany; Ulsan, Korea and Shanghai, Caojing, China. BASF produces BDO with an annual capacity of 535,000 t at its sites in Geismar; Ludwigshafen; Caojing; Chiba, Japan and Kuantan, Malaysia.

Markor currently produces BDO with an annual capacity of 160,000 t and is said to be the largest producer of BDO in China. To date, the company has invested RMB 5 billion (about EUR 600 million) in Markor Chemical Park.