Consumables

BASF expands plasticizers business in Asia Pacific

Wednesday 09. January 2008 - Oxo-C4 production capacity in Nanjing to be expanded to 305,000 metric tons Plasticizer applications laboratory inaugurated in Shanghai Focus on innovative products Hexamoll DINCH and Palatinol 10-P

BASF today (January 9, 2008) outlined several key initiatives for its Asia Pacific plasticizers business. To meet growing demand for solvents and plasticizers the company plans to expand the annual production capacity of its oxo-C4 plant in Nanjing, China, by 55,000 metric tons to 305,000 metric tons by the fourth quarter of 2008. This move will ensure reliable supplies of the precursor alcohols n-butanol and 2-ethylhexanol. In Asia, and in China especially, demand for plasticizers is expected to grow by 4 to 5 percent per year through to 2015.

At the same time, BASF inaugurated the region’s first plasticizer applications laboratory in Shanghai. The new laboratory’s research and development efforts will focus on flexible PVC applications for innovative products such as BASF’s Hexamoll DINCH, a non-phthalate plasticizer specially designed for sensitive applications for use in food contact and medical devices, and the recently introduced Palatinol 10-P, a new C10 plasticizer with a superior performance in the area of automotive and wire and cable applications. A team of technical experts will provide specialized services ranging from trials, tests and on-site technical advice to formulation adjustments and joint development with customers.

“This is a sign of the times – China in particular and Asia Pacific in general are the markets of today and the future for chemicals,” said Johnny Kwan, Chairman of the BASF Greater China Country Board. “Our state-of-the-art laboratory will provide our customers in the region with the innovations they need to be successful.”

“Debottlenecking the oxo-C4 plant prior to the launch of our expansion plans for our other facilities at the Nanjing site is crucial for our customers,” said Dr. Albert Heuser, President of BASF’s Petrochemicals division. “We will be able to meet rapidly growing demand in Asia, particularly in China, which accounts for about half of the demand for oxo-alcohols in the region. With the introduction of a technical service center in Shanghai and the expansion of our production capacity in Nanjing as well as that of our established facilities in Europe and the United States, BASF is strengthening its position as a leading global player in the field of plasticizers and plasticizer alcohols.”

Plasticizers provide flexibility to normally rigid and brittle PVC, thereby opening up a large number of applications in consumer goods. Plasticizers are essential in the production of numerous everyday products including flooring, cable insulation, toys and cling film. BASF is one of the world’s leading producers of plasticizers with a production capacity of more than 500,000 tons per year. It offers its custom

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