Officials from BASF and PETRONAS last Thursday attended the ground-breaking of a 2-Ethylhexanoic Acid (2-EHAcid) production plant at the BASF PETRONAS Chemicals Sdn Bhd integrated site in Kuantan

The plant, which is the latest investment by the BASF and PETRONAS Chemicals Group Bhd is the first of its kind in the Asean region. With a total annual capacity of 30,000 tonnes, it is expected to be commissioned in Q4 2016.

2-EHAcid is a chemical intermediate used as a compound, for example, in the production of synthetic lubricants as well oil additives. It is also used for functional fluids like automotive coolants and other applications in various industries.

BASF also operates a 2-EHAacid production plant at its Verbund site in Ludwigshafen, Germany.

The joint venture company announced plans to build this plant in February of this year. Please refer to our story in the March 2, 2015 OEM/Lube News issue for further details.

BASF PETRONAS Chemicals is a joint venture between BASF SE and Petroliam Nasional Bhd under its subsidiary PETRONAS Chemicals Group (PCG). Incorporated in 1997, the company operates an integrated complex situated at the Gebeng Industrial Zone, Pahang. The company's share capital is 60% held by BASF SE and 40% by PCG with a total investment of about RM3.4 billion (US$900 million) in production facilities for acrylic monomers, oxo products and butanediol.