SINGAPORE (ICIS)--BASF and Chinese petrochemical giant Sinopec will double their joint venture neopentyl glycol (NPG) production capacity in China, the German chemical major said on Wednesday.
NPG production at their 50:50 joint venture firm BASF-YPC Co Ltd in Nanjing will increase to 80,000 tonnes/year by 2020 from the current 40,000 tonnes/year, BASF said in a statement.
Investment details were not disclosed.
“With this increased capacity, we will support the fast-growing customer demand for high-quality NPG in China and the Asia Pacific region,” said Narayan Krishnamohan, BASF senior vice president for Intermediates Asia Pacific.
“The expansion is also in line with the trend towards environmentally friendly powder coatings with low volatile organic compounds, or VOCs,” Krishnamohan said.
NPG is a polyalcohol with applications in the power coatings, textiles and construction industries. It is mainly used as a building block in polyester resins for coatings, unsaturated polyester and alkyd resins, lubricants and plasticizers.
BASF currently has NPG production facilities in Ludwigshafen, Germany; in Freeport, Texas, US; and in Jilin, China.