BASF, Sinopec start up first chemical plants from China venture expansion
The first production facilities in the $1.4 billion expansion of BASF-YPC Co. have now begun operations in Nanjing, China.
BASF-YPC is the 50:50 joint venture established in 2000 between Germany’s BASF and China’s Sinopec.
Along with the successful completion of the steam cracker expansion, the newly constructed butadiene extraction plant and the non-ionic surfactants plant are now operational, according to company officials.
"With this expansion, we are now beginning to realize the true potential of BASF-YPC as a 'Verbund' site - a German term referring to a highly-integrated, highly energy-efficient production complex,” said Dr. Bernd Blumenberg, president of BASF-YPC.
“At the same time, the chemicals produced here contribute directly to supporting China's energy efficiency goals as outlined in the 12th Five Year Plan,” he added.
These plants are part of a $1.4 billion investment project which broke ground in September 2009. The project includes the expansion of the existing steam cracker, from 600,000 tpy to 740,000 tpy of ethylene, the expansion of three existing plants, and the construction of 10 new plants.
The products of this second phase will serve multiple industries such as agriculture, construction, electronics, pharmaceutical, automotive and chemical manufacturing, according to officials.
The bulk of the remaining plants are expected to come on-stream around the end of 2011.
The butadiene extraction plant, which extracts butadiene from the C4 cracker stream, is a core facility in the integrated C4 complex. Butadiene, an important intermediate, is used as a monomer in producing elastomers and thermoplastics, such as synthetic rubbers, acrylonitrile butadiene styrene copolymer and polyamide.
The non-ionic surfactants plant is part of an integrated ethylene oxide derivatives value chain which will also include a new amines complex. Non-ionic surfactants can be used for detergents and cleaners as well as in formulation technologies for various industries.
The new plant will serve a variety of industries, from home and personal care to textiles and construction.
Also, a superabsorbent polymers (SAP) plant will be constructed as part of the ongoing expansion project.
BASF and SINOPEC signed a memorandum of understanding in December 2010 to jointly explore the further expansion of BASF-YPC.
The new projects under consideration will extend the C3 and C4 value chains, including the construction of a new acrylic acid facility with a capacity of 160,000 tpy, a new butyl acrylate plant, as well as capacity increases at the 2-propyl-heptanol, styrene monomer, and non-ionic surfactants plants.
A new world-scale hydrogen peroxide / propylene oxide (HPPO) facility is also included in the new investments under consideration.
The new investments under consideration collectively total approximately $1 billion.
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