GEP plans first PBT unit for Europe with BASF jv

17 October 1994 00:00  [Source: ICB]

GENERAL ELECTRIC PLASTICS (GEP) is to build its first polybutylene terephthalate (PBT) plant in Europe in a manufacturing joint venture with rival BASF. The 50:50 joint venture will be based at BASF's site in Schwarzheide, eastern Germany, and will be known as BASF-GE-Schwarzheide.

GEP originally intended to make PBT at its Cartagena site in Spain. But 'these plans are now a thing of the past', said Uwe Wascher, senior managing director of GEP Europe. The proposed facility will have a capacity of 60 000 tonne/year of polymer and require an investment of DM100m ($65m). It is due onstream in Q4 1996. A DM23m grant is being provided by the Brandenburg authorities.

The market for PBT is currently growing strongly in Europe, at some 10%/year. Only last month DuPont announced its plans to expand PBT capacity in Europe with the building of a new 25 000 tonne/year unit using new technology (ECN 26 Sept). A location is still being decided upon.

BASF and GEP will develop the technology and split all the capital expenditure for the plant. The major feedstock, butanediol, will be supplied by BASF, which already has an exclusive supply agreement with GEP in the US. Negotiations with other feedstock suppliers (mainly DMT) will begin immediately, said Wascher.

The Schwarzheide plant will produce only the base polymer. GEP and BASF will continue to compound their own products, with independent marketing and sales operations. The products are marketed under the trade names Ultradur and Ultrablend (BASF) and Valox and Xenoy (GEP).

BASF has already commissioned a new compounding plant for its engineering plastics at Schwarzheide, while GEP will divide its compounding activities between its major European site at Bergen op Zoom and a new 40 000 tonne/year unit in Spain, due to begin operation next month.

The PBT unit will be BASF's eighth investment at Schwarzheide. Four are already onstream and the others, apart from PBT, will be onstream by 1995. This includes production of the new crop protection agent Opus.

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