BASF and Shell consider S'pore SM/PO jv

17 December 1998 08:02  [Source: ICIS news]

SINGAPORE (CNI)--BASF and Shell Chemicals Thursday signed a letter of intent towards forming a 50:50 joint venture to produce styrene monomer (SM) and propylene oxide (PO) here.

A BASF spokesman told CNI the companies' boards are expected to make a final investment decision next year on the proposed, worldscale facility on Jurong Island - which would stand alongside the Seraya Chemicals SM/PO facility there, a Shell-Mitsubishi joint venture.

If built, the BASF-Shell facility would come onstream in 2001, producing 550 000 tonne/year of SM and 250 000 tonne/year of PO.

A similar facility is under construction in Moerdjik, the Netherlands, by Basell, a BASF-Shell joint venture there. It will come onstream in 1999.

Jean-Pierre Dhanis, president, BASF polyurethane/PVC division, said: "Asia will be the biggest growth market for polyurethanes within the next ten years.

"We are producing in South Korea methylene di-p-phenylene isocyanate (MDI), a key material for polyurethanes. The considered PO output in Singapore would be the logical next step for us to optimise supplies to Asia."

By: Lawrence Basapa
+65 6780 4359

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