25 April 2013 11:29 [Source: ICIS news]
SINGAPORE (ICIS)--BASF and Malaysia’s Petronas Chemicals Group (PCG) said on Thursday they are planning to invest $500m (€385m) in an integrated aroma ingredients complex in Kuantan, Malaysia, as part of their existing joint venture.
The complex, which will be operated by BASF PETRONAS Chemicals, will house citral and precursor plants and will contain downstream production for aroma ingredients including a new world-scale plant for L-menthol and a plant for citronellol, they said in a joint statement.
Production will be developed in phases, with the first plants of the project scheduled to be operational in 2016.
“The integrated aroma chemicals complex will open up a new business frontier for PCG, tapping into the flavors, fragrance and pharmaceuticals markets,” said PCG chairman Wan Zulkiflee Wan Ariffin in the statement.
Aroma ingredients are used primarily in home and personal care products and fine fragrances, as well as in the food industry and in pharmaceutical applications.
BASF PETRONAS Chemicals currently operates an integrated complex situated at the Gebeng Industrial Zone,
Pahang. BASF holds a 60% share in the joint venture, while PCG owns the remaining 40%.
The partners will invest according to their stake for the new aroma ingredients complex, according to the joint statement.
($1 = €0.77)
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