BASF - SINOPEC add Capacity of Neopentylglycol in China
BASF SE and SINOPEC announced last week, they will expand the production capacity of Neopentylglycol (NPG) at the state-of- the-art Verbund site, BASF-YPC Co., Ltd., a 50-50 joint venture in Nanjing, China. The plant was established in 2015 with an annual capacity of 40,000 metric tons. Following the expansion, the capacity will be doubled to 80,000 mt/yr. The expanded capacity will come on stream in 2020.
NPG is a unique polyalcohol offering superior performance in many end-use applications. It is used primarily used as a building block in polyester resins for coatings. Important uses are also found in hydraulic fluids, synthetic lubricant oils, greases, metal-working fluids and aircraft engine lubricants.
“With this increased capacity, we will support the fast-growing customer demand for high-quality NPG in China and the Asia Pacific region. The expansion is also in line with the trend towards environmentally friendly powder coatings with low volatile organic compounds, or VOCs,” says Narayan Krishnamohan, senior vice president, BASF Intermediates Asia Pacific. “As a globally leading supplier of NPG, we have decades of experience in manufacturing and supplying NPG to our customers across a broad range of industries. Customers will benefit from our regional presence, innovation strength, flexibility and reliability of supply.”
“The investment further strengthens strategic success between SINOPEC and BASF as we both support the trend of sustainable development. Both SINOPEC and BASF have confidence in Nanjing, Jiangsu, and its future prospects, as an ideal investment destination,” says Li Cheng Feng, chairman of Sinopec Yangzi Petrochemical Company Limited and BASF-YPC Company Limited.