KUALA LUMPUR, July 21 — BASF Petronas Chemicals Sdn Bhd’s world-scale production plant for highly reactive polyisobutene (HR-PIB) in Kuantan is expected to start production in the fourth quarter of 2017.

The plant, the first of its kind in Southeast Asia, will have a total annual capacity of 50,000 metric tons of HR-PIB, the company said in a statement.

HR-PIB is an important intermediate product for the manufacturing of high performance fuel and lubricant additives, including additives for sludge prevention.

“Leveraging excellence in technology will be an important factor in accelerating future profitable growth globally and especially in Asia,” Dr Christian Fischer, President of BASF’s Performance Chemicals Division said.

BASF has over seventy years of experience in the manufacturing of HR-PIB.

Besides the new plant in Asia, the company operates production facilities for HR-PIB in Germany and Belgium, as well as within a joint venture with Sinopec YPC in China.

Hence, the new plant will further strengthen the global footprint of BASF as the leading supplier of this product, said Fischer.

 “The investment marks another significant milestone in the development of the Kuantan site as a leading specialty chemicals hub in the Asia Pacific region.

“This is in line with the Petronas Chemicals Group’s strategy to diversify into specialty chemicals and solutions,” said Datuk Sazali Hamzah, President and Chief Executive Officer of PETRONAS Chemicals Group Bhd.

BASF Petronas Chemicals is a Malaysian-based joint venture between BASF SE and Petroliam Nasional Bhd (Petronas), Malaysia’s national oil company, under its subsidiary, PETRONAS Chemicals Group.

Sazali said it also strengthens the presence of highly advanced and forward oriented technologies and expertise in Malaysia and the region.

In addition to the proposed plant, BASF PETRONAS Chemicals is also building two other plants at its Kuantan site.

The first is an integrated aroma ingredients complex for the manufacturing of citronellol, L-menthol as well as citral and its precursors, which are widely used in the flavour and fragrance industry.

The other is a 2-ethylhexanoic acid (2-EHA) production plant for the manufacturing of 2-EHA compound for the production of synthetic lubricants as well as oil additives.

It is also used for functional fluids like automotive coolants, metal salts for paint dryers, plasticisers, stabilisers, catalysts and other applications in various industries.— Bernama