Corrected: BASF closes in on $1bn China expansions in 2008

21 February 2008 14:40  [Source: ICIS news]

Correction: In the ICIS news story headlined: "BASF closes in on $1bn China expansions in 2008", dated 21 February 2008, please read in the second paragraph ...BASF’s expenditure on the Nanjing expansions is expected to be close to $1bn (€678.8m). It plans in addition to build a 400,000 tonne/year crude MDI (methyl di-p-phenylene isocyanate) plant in Chongqing... instead of  ...BASF’s expenditure on these projects and the construction of a 400,000 tonne/year crude MDI (methyl di-p-phenylene isocyanate) plant in Chongqing would reach close to $1bn (€678.8m)....

In the fifth paragraph please read ...BASF had originally earmarked $500m for the Nanjing expansions but this was raised last year to $900m... instead of ... BASF has signed a $500 million agreement with Sinopec covering the expansions.... A corrected story follows:

LUDWIGSAFEN, Germany (ICISnews)--BASF expects approval this year for a feasibility study on the planned broad-based expansion of plants at its joint-venture production complex with Sinopec - BASF-YPC - in Nanjing, China, CEO Jurgen Hambrecht said on Thursday.

BASF’s expenditure on the Nanjing expansions is expected to be close to $1bn (€678.8m). It plans in addition to build a 400,000 tonne/year crude MDI (methyl di-p-phenylene isocyanate) plant in Chongqing, he said.

The Chongqing plant was close to the pre-feasibility stage, he added.

BASF would continue to grow considerably in Asia, Hambrecht said at the group’s annual press conference here following the announcement of fourth-quarter and annual results, adding revenues would further expand in 2008.

BASF had originally earmarked $500m for the Nanjing expansions but this was raised last year to $900m.

The plans include the raising of cracker capacity at the site to 750,000 tonnes/year and additional downstream units. They would involve raising the venture's ethylene oxide (EO) plant by 80,000 tonnes per /year and the building of an  80,000 tonne-per-year butyl glycol ether unit and a 60,000 tonnes /year non-ionic surfactants unit.

The company will also expand its 250,000 tonne/year oxo-alcohols unit's capacity to 300,000 tonnes/year to provide butanol feedstock for a proposed butyl glycol ether unit.

It will  build a 100,000-120,000 tonne/year butadiene extraction unit, a 120,000 tonnes/year 2-propylheptanol (2-PH) unit, an 80,000 tonne/year isobutene extraction unit, a 50,000 tonne/year polyisobutene unit and a 30,000 tonne/year polyisobutene amine unit.

BASF-YPC will also extend its acrylics chain by building a 60,000 tonne/year super absorbent polymers (SAP) unit.

Meanwhile, BASF’s Asia-Pacific sales rose by more than 25% in local currencies last year, the company said, with the greatest contribution from its chemicals segment, particularly the new catalyst division.

Operating profits from the region were €828m more than four times that reported for the prior year.

China was not immune, however, from a global economic slowdown, Hambrecht said. Its GDP growth could slow to 9.7% a year in 2008, from 11.4% in 2007, he added.

($1 = €0.68)

By: Nigel Davis
+44 20 8652 3214

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