BASF and PETRONAS Chemicals Group Berhad jointly announced on February 18 they will build a new world-scale production plant for 2-Ethylhexanoic Acid (2-EHAcid) at the site of their existing joint venture, BASF PETRONAS Chemicals, in Kuantan, Malaysia. The construction of this plant, which will be the first of its kind in the ASEAN region, is expected to commence in Q2 of 2015. The plant, with a total annual capacity of 30,000 metric tons of 2-EHAcid, is expected to start production in the fourth quarter of 2016.

“With this new plant, we are responding to our customers’ growing demands in Asia Pacific. Through this additional capacity BASF will become one of the leading suppliers for high purity 2-EHAcid in the region,” said Stefan Blank, President, BASF Intermediates division. “This investment further strengthens BASF’s offering in various downstream markets across a broad range of applications.”

“With this project, PETRONAS and BASF are fully utilizing our strengths in the areas of resources, technology, talent and management,” said Datuk Sazali Hamzah, President & Chief Executive Officer of PETRONAS Chemicals Group.

2-Ethylhexanoic acid 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, metal salts for paint dryers, plasticizers, stabilizers, catalysts and other applications in various industries. BASF operates a 2-EHAacid production plant at its Verbund site in Ludwigshafen, Germany.

BASF and PETRONAS Chemicals Group (a subsidiary of Malaysia’s National Oil Company, PETRONAS) founded their Malaysian-based joint venture BASF PETRONAS Chemicals Sdn Bhd in 1997. BASF PETRONAS Chemicals currently operates an integrated complex situated at the Gebeng Industrial Zone, Pahang, Malaysia. The company’s share of capital is 60% held by BASF SE and 40% by PCG.