BASF, Petronas to build 2-EHAcid unit in Malaysia

BASF and Petronas will build a new world-scale production plant for 2-Ethylhexanoic Acid (2-EHAcid) at the site of their existing joint venture in Kuantan, Malaysia, the companies announced on Wednesday. 

The construction of this plant, which will be the first of its kind in the region, is expected to commence in the second quarter of 2015. 

The plant, with a total capacity of 30,000 tpy of 2-EHAcid, is expected to start production in the fourth quarter of 2016. 

The new plant will benefit from backward integration into the site, allowing high delivery reliability and maximizing efficient use of energy and feedstock.

“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 of BASF's intermediates division. “This investment further strengthens BASF’s offering in various downstream markets across a broad range of applications.”

2-Ethylhexanoic (2-EHAcid) 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. 

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

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